TalkTalk could crash into administration within days, putting Ministry of Defence systems at national security risk

From the Newshound archive · first published 25 September 2026.

Britain's national security faces serious risk after telecoms sources warned that a TalkTalk administration could disrupt secure services on which the Ministry of Defence depends. Security officials have been working closely with civil servants and Ofcom in an effort to keep the company running. TalkTalk serves around 1.5 million broadband customers and ranks as Britain's fourth-biggest provider. Negotiations to sell its wholesale arm, PXC, to Octopus Investments for roughly £300 million have reportedly broken down.

Outstanding payments to Openreach are understood to have built up significantly, with large bills due at the end of this month.

Should TalkTalk become insolvent, one option being considered is handing control of the business to BT — a move that would draw a line under the company Charles Dunstone built within his Carphone Warehouse empire.

Lenders face losses running into hundreds of millions even if a solvent sale goes ahead, while Dunstone and lender Ares Management may pump in additional funds on top of the £350 million in emergency financing they have already provided over two years.