Carphone Warehouse plans major broadband move

3 Nov 2005

UK mobile phone retailer Carphone Warehouse has announced it is planning a major push into the UK broadband market in 2006 by installing its own equipment at local telephone exchanges. Releasing a strong set of interim results, the group said it would spend between GBP10 million and GBP15 million a year over the next three years on putting its own equipment into around 1,000 BT exchanges. Carphone Warehouse has attracted over a million subscribers to its TalkTalk fixed-line arm since its launch in early 2003, most of whom are voice customers. The group hopes that investing in local loop unbundling will give it greater control over the packages and prices it can offer, increasing the amount of revenues it gleans from those subscribers. The announcement came as the company said pre-tax profit before goodwill rose GBP37 million from GBP27.3 million in the six months to 1 October, slightly higher than the 35% rise the company had predicted early last month. Turnover for the period grew 25% to GBP1.29 billion as the total number of subscribers it signed up to mobile, fixed-line and insurance services jumped 35% to 5.75 million.

United Kingdom