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Carphone Warehouse targets 3.5m broadband customers

In an annual strategy update, Carphone Warehouse told investors and analysts of its plans for the next year.

In the presentation, Carphone says it is targeting 3.5m broadband customers and plans to roll out its LLU based broadband service to 1,650 unbundled exchanges. Currently, it is losing money by reselling BT wholesale broadband from these exchanges that are not unbundled. 

Once an exchange is unbundled, the company can offer its own broadband service at a cheaper cost.

The company is also investing in 150-200 new stores by expanding its US based retail operation called Best Buy Mobile over the next 18 months.  Some local investment in new stores is also planned.

Charles Dunstone, Chief Executive Officer, said in a press release:

“Our US trial has been successful and we are today announcing a rapid roll-out of the Best Buy Mobile format, allowing us to penetrate the substantial US market in an effective manner with a world class partner.

“In broadband, we are targeting 3.5 million residential customers by March 2010. Provisioning times are falling as the unbundling process becomes more streamlined, and we are confident that our increased investment in customer service will deliver a much improved customer experience.  The success of the free broadband proposition and the compelling economics that unbundling delivers have led us to extend our LLU footprint to cover 1,650 exchanges, reaching over 80% of the population.”