Carphone Warehouse bumps up broadband investment

2 Apr 2007

Carphone Warehouse has announced that it will need to make a further investment of between GBP10-GBP15 million (USD20-USD30 million) in its broadband division, following delays in switching subscribers over to its own network. In an unscheduled trading statement, Carphone Warehouse said it was still ‘a little behind our original business plan’ after failing to migrate customers quickly enough onto the unbundled local loop network it is rolling out across the UK. However, the mobile phone retailer said customer migration had stepped up recently, and that it was ‘confident’ in ‘making up the lost ground’ by the summer. The firm reiterated its forecast for a GBP30 million profit from the service in the fiscal year ending March 2008. It bought AOL UK’s internet access business for GBP370 million last year and expects to incur a loss of GBP70 million in the year just finished on the new business. Carphone Warehouse said it had a total of 2.27 million broadband customers across TalkTalk and AOL at the end of March 2007. Of these, only 375,000 TalkTalk customers and 327,000 AOL subscribers were on unbundled lines.

United Kingdom, AOL UK (part of Carphone Warehouse), TalkTalk