Newspaper reports claim that The Carphone Warehouse (TalkTalk) will this week be forced to admit that it has suffered a slowdown in uptake of its "FREE" broadband service.
It's expected that the ISP will attribute this to tough market competition as opposed to issues over service and support quality:
The group, which is fighting competition from big names including BSkyB, is expected to disclose in a trading update on Wednesday that net additions for broadband in its second quarter have dropped to as little as 95,000, from 126,000 in the last quarter.
Carphone’s slowing customer numbers are expected to be offset by strong progress on transferring customers on to its own network – a key test of the profitability of the service. The communications group makes a loss of around £5 per month on each customer who takes on the BT wholesale product. It becomes profitable only when these customers are connected to Carphone’s own network.
Typically this is not the freefall that some had feared last month, rather a mild slowdown. It should also be taken in context, where many providers in the market have been similarly affected by competition.
The real test will be whether or not Carphone’s slowdown becomes more aggressive over the coming months. TalkTalk already offers one of the cheapest fixed-line and broadband bundles, limiting its ability to offer additional incentives. More @ The Times.
Return to hosting news headlines
View Hosting News Archive