Telecoms group Carphone Warehouse will demerge from its broadband arm TalkTalk by July next year.
According to the business's latest financial results, which showed a rise in profits to £550 million for the year ended March 31st 2009, the internet service provider is now in a position to operate independently.
The development comes just weeks after TalkTalk completed a £236 million takeover of troubled rival Tiscali.
Chief Executive of Carphone Warehouse Charles Dunstone said: "It's been increasingly obvious that the group is now two businesses - Best Buy Europe and TalkTalk Group.
"There are no material synergies between them and for operational and competitive reasons, they need to operate independently."
Mr Dunstone went on to say that both operators were already "effectively" run separately.
TalkTalk is currently one of the UK's largest broadband providers, with a subscription base of approximately 2.8 million users.