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Carphone Warehouse Issues Annual Update

Posted: 05th Jun, 2007 By: MarkJ
The Carphone Warehouse (AOL UK, Talk Talk etc.) has issued its annual trading update to the end of March 2007. There's nothing terribly new in the update, which mirrors its previous first quarter results (here), but some comments by CEO Charles Dunstone make for a good read:

"TalkTalk Free Broadband has changed the UK broadband marketplace and, coupled with the acquisition of AOL's UK customer base, we are now number three in the market. In parallel, we have exceeded our targets for unbundling local exchanges and have launched Britain's first large scale next generation network, delivering voice and data over a unified infrastructure. This has yet to be replicated by our competitors in any meaningful scale and gives us a valuable economic advantage in the delivery of fixed line services.

The customer service issues which arose from the unprecedented response to our Free Broadband offer have now substantially been addressed. We are now provisioning over 80% of new customers directly onto unbundled lines, which simplifies the process and reduces waiting times to no more than three weeks from sign-up. This trend, combined with the continued migration of existing customers to our own network, is the key driver of broadband profitability. Demand continues to be strong and customer confidence in the service is increasing.

As we communicated in April, the success of our unbundling strategy has encouraged us to broaden our exchange footprint for both TalkTalk and AOL customers, resulting in a further year of significant infrastructure investment. However, we expect the level of investment to fall materially in the following financial year once our exchange build-out is completed.
"

We wouldn't describe Carphone's network as being "Next Generation", but anybody interested can read the full report HERE.
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