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TalkTalk could branch off from Carphone Warehouse in a bid to remodel the business, the firm's founder has hinted.

Chareles Dunstone has announced that keeping the broadband provider as part of the mobile phone outlet could prevent "optimal development".

His comments come in the same week that it was announced Carphone Warehouse interim profits over the six months to October 27th were down to £39 million from £44 million over the same period a year previously.

Mr Dunstone said: "We recognise that the structure of the group may now no longer be appropriate for the optimal development of the two businesses.

"The board has therefore initiated a formal review of the group's corporate structure and capital requirements, which may lead to a separation of the two businesses."

Meanwhile, the Guardian has reported that TalkTalk is thinking of introducing a special tariff for those struggling to meet monthly payments.

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