Sign ups to Talk Talk broadband slowing down
The Carphone Warehouse is a large group and benefits from its mixture of high street and online presence, so a slow down in broadband growth is easily swallowed up with increased sales elsewhere. The latest numbers which cover the second quarter of the year can now be read on reuters.co.uk.
Carphone Warehouse had forecast 103,000 net broadband sign ups on its AOL Broadband and Talk Talk brands, but this has fallen short at 89,000. Pinning down exact reasons is difficult, but the ever increasing amount of competition in the bundle market is probably having a large effect, which means the Talk Talk bundles are perhaps not as financially attractive as in the past. It is worth pointing out that the free laptop deal via AOL Broadband will not be featuring in the number of sign ups. The effect of this is likely to be seen in the third quarters results.
It is no secret that the pricing of the Talk Talk bundles relies heavily on being able to unbundle the customers telephone line and broadband connection. Even the surcharge for those outside LLU areas barely covers the extra costs incurred. The last quarter saw 411,000 customers moved over to the unbundled AOL broadband and Talk Talk networks, which means out of the 2.5 million broadband customers in the group, 1.4 million are on an unbundled connection.