Broadband News

TalkTalk to split from Carphone Warehouse

Wednesday, 22 April 2009

By Garnet Roach garnet@consumerchoices.co.uk

Announcing an increase of 74,000 customers, Carphone Warehouse has confirmed that its biggest ISP, TalkTalk is to split from the group.

In its latest financial results, the Carphone Warehouse, which owns TalkTalk Broadband (www.TalkTalk.co.uk), AOL Broadband (www.AOL.co.uk) and business broadband provider Opal, announced that TalkTalk would be demerging from the group, though it did not say when..

Carphone Warehouse also revealed total broadband additions of 74,000 - bringing its customer base back up to 2.8 million subscribers after a brief decline in the previous quarter.

Although Carphone Warehouse only predicted modest gains of between 125,000 and 175,000 TalkTalk customers for the coming year, Charles Dunstone, chief executive officer, said: “The business has performed well in the fourth quarter, with continued sales momentum in both divisions. The full year out-turn is set to be in line with expectations. Our broadband business has shown strong progress, reflecting higher gross adds, lower churn and continued operational improvements. Our value proposition is clearly resonating with customers.”

Although the group added a total of 74,000 broadband customers in the fourth quarter, TalkTalk itself actually gained 97,000 customers but losses of 23,000 AOL customers brought the figure down.

Carphone Warehouse also ended the year with 2.2 million local loop unbundled (LLU) customers, representing 78 per cent of its customer base and “making TalkTalk Group easily the largest unbundler in the UK”.

Michael Phillips, BroadbandChoices.co.uk product director, said: “The broadband market has clearly been slowing as the credit crunch has taken hold. However, many people now see broadband as a daily essential and have been looking to cut down on their bills rather than ditch the internet all together.

“Switching broadband provider can save you up to £135 on your bills, and as one of the UK’s cheapest broadband and phone providers - offering broadband, a home phone package and line rental for just £17.74 a month - TalkTalk represents real value for money.”