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Mixed views on latest Carphone Warehouse broadband figures

Carphone Warehouse released its latest trading update today, including broadband progress.

A slower rate of sign-ups in December left TalkTalk with a Broadband customer base of 632,000, below some analyst expectations.  However, some analysts expect that to increase from this month.  The number of broadband customers on TalkTalk’s own LLU network (those exchanges that have been unbundled) stands at 132,000, with a further 280,000 unbundled AOL customers.  These connections create a profit for the company.

The remaining TalkTalk customers use BT’s wholesale broadband network until their exchange is unbundled and these are not profitable for TalkTalk. They now plan to concentrate on migration of these existing customers over to the LLU network.  Currently, 569 exchanges are unbundled and Carphone Warehouse state that they are on target to unbundle 1,000 exchanges by May.

TalkTalk currently has 2.2m residential broadband customers with the completion of AOL acquisition late in 2006, making it the clear number three player in the broadband market.

Related links

• Carphone Warehouse trading statement
• TalkTalk Broadband offers