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Carphone Warehouse unbundles 2,212 exchanges
Friday 09 November 2007 10:14:48 by Andrew Ferguson

In the broadband world, Carphone Warehouse is best known for its 'free' broadband deals via TalkTalk which since its launch in 2006 has produced a lot of publicity for the group, some good some bad. Some marketing people will argue any publicity is good publicity as it ensures people know your brand. The group has published its half year results for the period up to the 29 September 2007.

Carphone Warehouse apparently has unbundled 2,212 exchanges where it can offer its fully unbundled TalkTalk packages, and currently 55% of the connections from the total of 2.5 million in the group are unbundled. This is expected to rise to 70%.

"We added 215,000 net new broadband customers during the period, taking our total customer base to 2.5m, equivalent to a share of approximately 17% of the UK broadband market. The AOL base declined during the period, as we focused on recruiting customers only within our exchange footprint through geographical pricing variations. However, towards the end of the period, as our AOL footprint extended rapidly and we introduced our free Dell laptop offer, the AOL base stabilised. The TalkTalk base made further good progress, reaching one million customers within 18 months of the launch of Free Broadband. Blended broadband ARPU for the first half was £21.7, ahead of our expectations and reflecting a higher proportion of TalkTalk customers and good sell-through of voice services to AOL customers."

Extract from Carphone Warehouse half year results

Analysis of the recent rash of financial reports over at the Financial Times highlights the competition between BT (the grand old master) and Talk Talk (the new upstart) and makes what we believe is a good observation. This observation is that while BT may lose ground to Talk Talk it will still earn residual income from the unbundled lines. This means even if Talk Talk and other unbundled operators were to dominate the UK broadband and telephone market there would still be a place for BT, albeit probably a much leaner BT.


Posted by herdwick over 9 years ago has Talk-Talk with 1422 exchanges and AOL with 1049 exchanges. Is the headline figure the sum of the two (ish) ? Do AOL unbundled exchanges deliver Talk-Talk LLU services and vice versa ?
Posted by SamC over 9 years ago
My guess would be that they've taken the union of their two footprints (i.e. non-overlapping exchanges). Both supplied me with their latest LLU data within the past two weeks, so the figures are certainly up to date. I'll check with them anyway.
Posted by andrew (Favicon staff member) over 9 years ago
The thought did occur to me, but 1422 + 1049 is more than 2212, so looks to be something else.

Extracts from report (fixed the URL by the way)
"2.5m broadband customers
• 1.4m broadband customers now unbundled - 55% of total broadband base
• 2,212 exchanges unbundled"

"CPW Networks has extended its reach, such that we now have over
2,200 exchanges unbundled "

The wording suggests unique exchanges.
Posted by SamC over 9 years ago
Ignore my last post... A quick check in my database reveals that the two combined have 1516 unique exchanges. I'll check with them directly.
Posted by ETEE over 9 years ago
The figures (2212) were produced for CPW interim results and so would be correct up to the date of those results. CPW have certainly added the number of AOL & TT LLU exchanges together and most of these are co-located and sharing backhaul. There have been a large number of AOL LLU exchanges added recently.

I think the figures are misleading and the Stock Exchange ought to investigate.
Posted by ETEE over 9 years ago
The interim results were up to 29th September 2007. So SamC can easily do a check on CPW LLU exchanges up to that date.
Posted by CARPETBURN over 9 years ago
All i can say is i feel sorry for any of the customers.
Posted by Jamiepw over 9 years ago
Just like most of the 'News grabbing' headlines that are in the press, it does not really matter if the news is slightly wrong or in the MMR case very wrong, it is the 'initial shock' factor that is what counts.
Posted by Roy124 over 9 years ago
yes, I am not unbundled and my 8Gb connection does not reach 2Gb even at less than 1km from the exchange.

As for their call centre. Can you imagine their second level support does not have inetrenet access!
Posted by Redback over 9 years ago
@Roy124 why do they need internet access to diagnose that you dont understand how ADSL works, it has NOTHING to do with your physical location compared to the exchange, its the circuit length in total all the way from the NTE5 to the DSLAM or MSAN in the case of CPW Networks, quality of the the copper, condition of the NTE5, ADSL filter efficiency, CPE and numerous other issues that only Openreach can resolve in addition to the fact that it says UP TO 8Mb
Posted by andrew (Favicon staff member) over 9 years ago
Talk Talk in areas where they don't have their LLU kit often connect people on IPstream Home 2000, rather than IPstream Max.

Talk Talk AFAIK is still trialling IPstream Home Max if reports from customers are correct.
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