Since its launch of ‘free’ broadband last year, TalkTalk have suffered from bad press and complaints due to slow connection times and other issues. However, Charles Dunstone, the head of Carphone Warehouse (CW) has constantly reiterated that the blame for their troubles does not rest solely with them.
This has now been confirmed as BT have paid compensation to CW (believed to be in the region of the low millions) for delays in transferring Carphone’s customers. This comes shortly after CW announced better than expected full-year earnings of £294 million on revenues up 31 per cent to £3.9 billion.
This has set CW up for a fresh assault in the fixed line broadband market, and they aim to compete with current leaders BT and Virgin Media. Charles Dunstone believes that they have broken the back of their broadband problems and aims to knock BT off the top spot as the nation’s largest broadband provider.
One thing for certain is that Carphone Warehouse has a lot of ground to make up in terms of public perception. These problems even caused Mr Dunstone to apologise to; “customers we feel we’ve let down”. He claimed that he had grossly underestimated the success ‘free’ broadband would bring to the company. Due to a lack of staff and in-house technical expertise, CW were unable to cope with demand.
These problems seem to be almost rectified and CW have had notable success in its core business, their shops, which have increased profits by 22 per cent. CW is well placed to launch another attack on the broadband world, hopefully with greater success this time around.
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