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Broadband - Broadband News - The Carphone Warehouse release trading details on TalkTalk

The Carphone Warehouse release trading details on TalkTalk

2nd April 2007

The Carphone Warehouse release trading details on TalkTalk

The Carphone Warehouse has today released its latest Trading Statement that also covers their TalkTalk broadband.

The Carphone Warehouse release details about TalkTalkThey announced that they have 2.27m broadband subscribers with 702,000 on unbundled lines, this is less than one third of their subscribers.
They also have 1,024 exchanges unbundled, which they say is two months ahead of schedule.
The Carphone Warehouse need to get their customers onto the unbundled lines to help maximise their profitability and they are likely to work hard to get customers moved over to this as soon as they can do, those customers who are still not on unbundled lines means that it costs The Carphone Warehouse 5 per customer per month for each subscriber still using BT Wholesale connections.

The Carphone Warehouse Chief Executive Officer, Charles Dunstone said:

In our broadband business, we have made excellent progress both on the rate of customer migration to unbundled lines, and the roll-out of our network of unbundled exchanges. The delays we reported in migration earlier in the year mean we are still a little behind our original business plan; but the current momentum of customer recruitment and migration gives us confidence that we will make up the lost ground by the summer. In our programme of unbundling
exchanges, we have exceeded our initial target of unbundling 1,000 exchanges two months ahead of schedule.

We also continue to invest in customer service as we work to further build the service levels at TalkTalk following the problems we incurred at launch. As ever, our goal is not to maximise immediate profitability if it compromises the customer experience, but rather to protect the brand and proposition for the longer term. In all other respects, the economics of our broadband business remain in line with our original guidance.

They also announced that they expect a 10-15m increase in additional customer service costs relating to its broadband offering.

The full Trading Statement can be read at

Author: Mark Ward
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