25 April 2007
The Carphone Warehouse - parent company of broadband supplier TalkTalk - has admitted this week that its sales have been dwindling in recent months with overall growth predicted to be as low as 10%.
Chief Executive Charles Dunstone declared yesterday that BT's Openreach broadband package was to blame for the backlog of 260,000 TalkTalk free broadband customers, each of which he reckons is costing the group £5 a month for the period they are not connected directly to Carphone's telephone lines and have to rent from BT.
He reassured customers however, that business was set to improve, with TalkTalk's expectations of having 3.5 million broadband customers signed up to its free broadband package predicted to come to fruition by March 2010.
Mr Dunstone told The Evening Standard: "We continue to see ample opportunities for the long-term growth in existing and new business areas and plan to reinvest a significant proportion of cash generated this year into building this growth platform."
However, Steve Weller, Head of Communication Services at independent price comparison and switching service uSwitch.com, has warned that unless TalkTalk bolsters its customer service, TalkTalk's current customers could switch to a rival within months.
"The real test for TalkTalk will come in the next six months, as those who signed up to the 'free' broadband offer come to the end of their 18 month contract," he said.
"uSwitch.com data shows that an increasing number of customers on TalkTalk's 'free' broadband deal are already considering the other options available, quite possibly as a result of the poor customer service they have had to endure."
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