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CW (AOL/TalkTalk) Top 2.5m Broadband Subscribers

Posted: 10th Oct, 2007 By: MarkJ
The Carphone Warehouse (AOL UK, TalkTalk, One.Tel etc.) has issued its second quarter trading update to 29th September 2007 today, revealing an expected slowdown in broadband uptake over previous reports.

The group managed to net just 89,000 new broadband users, making for a total of 2,500,000:

We made excellent progress with our network roll-out over the quarter. We unbundled a further 137 TalkTalk exchanges and a further 363 AOL exchanges, taking the totals to 1,384 and 828 respectively. We also connected an additional 411,000 customers to our own network, taking our total of on-net customers to 1.4m, or 55% of our broadband base. Our business now accounts for 43% of all unbundled lines in the UK market. With underlying network economics absolutely in line with our original projections, this gives us increasingly good visibility of future profitable growth.

Charles Dunstone, Chief Executive Officer, said: 'I am very pleased with the progress we have made in our fixed line business, with visibility of future profitable growth increasing all the time. We now have over one million TalkTalk broadband customers, while the focus in AOL has been on customer migrations and network roll-out. As a result, over 80% of all new broadband customers are now connected directly to our own network. We are well ahead of schedule for migrating existing customers to our own network; we have the most extensive unbundled coverage in the UK; and customer service unit costs are falling as our processes improve.'

Carphone expects to add 200,000 to 250,000 new broadband customers over the second half of the year.
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