Carphone Warehouse predicts that sales of its broadband connections will grow by 45 per cent in the next year.

The company, which offers free high speed internet with fixed line phone services through TalkTalk plans to spend an additional £10 to £15 million over the next 12 months in order to improve its communications infrastructure, reports Bloomberg.

Bosses believe this investment in a simple unbundled service will help lure customers away from BT and Virgin Media, who are pitching their phone, mobile and broadband products as bundles.

"UK broadband problems are being fixed, although costs are higher and migration slower than anticipated," analyst Christian Koefoed-Nielsen of Panmure Gordon told the news agency.

Earlier this month, the firm admitted it was having problems meeting its target of unbundling customers from local BT exchanges.

"The delays we reported in migration earlier in the year mean we are still a little behind our original business plan," chief executive Charles Dunstone said.

"But the current momentum of customer recruitment and migration gives us confidence that we will make up the lost ground by the summer."

The company estimates it will have 3.5 million broadband customers in the UK by 2010, up from around two million today.




Tuesday, 24th April 2007

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