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One of Britain's foremost broadband providers has issued gloomy growth predictions this year.

Carphone Warehouse has linked its disappointing projected figures relating to new customers with the recent housing market slump.

After originally predicting that it would gain 400,000 customers this year, the firm has revised that number down to between 200,000 and 250,000.

The company revealed it had welcomed on board 44,000 new customers in the three-month period up until the end of June 2008, compared with 126,000 during the corresponding period last year.

Chief executive Charles Dunstone explained to the Guardian: "It is a combination of fewer housing transactions, because buying a house is a key time when people change supplier, and more people buying mobile broadband instead of fixed line access."

Carphone Warehouse said that connection volumes growth was at satisfactory levels, largely down to smartphone and mobile broadband sales.

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