Carphone Warehouse Demerges its UK Broadband Division
According to a fresh Trading Update issued by Carphone Warehouse, the company is all set to demerge its broadband ISP division in the United Kingdom. This says that the various broadband divisions of the company, such as TalkTalk, Tiscali, AOL Broadband and OneTel will operate independently from July 2010, according to the latest reports.
However, for many broadband UK experts the move is nothing surprising, as it had been always on the cards since Best Buy USA had acquired a stake in the group. Presently, TalkTalk broadband ISP serves above 3.9 million fixed line consumers in the UK. The denomination of the customer base is; 2.8 million broadband customers, 1.1 million narrowband and voice only customers.
Carphone Warehouse, which enjoys the number three status in the broadband sector of the UK currentl, is eyeing the overall second largest broadband slot in the country, just behind the British fixed broadband giant BT, after it acquisition of the UK assets of Tiscali Broadband is complete. The Tiscali UK property acquisition by Carphone is expected to be completed by June 2009.
The CEO of the company, Charles Dunstone opined that it was increasingly obvious that the company was two businesses; TalkTalk and Best Buy Europe, and needed to operate independently since the groups had not only outgrown one another but also had reached a stage of haedly any material synergies between them.
