Broadband service provider Carphone Warehouse may be forced to admit it has been the victim of intense competition if sales figures show a slump in fortunes, according to reports.

The company, which launched the first free broadband service 18 months ago, is expected to announce on Wednesday (October 10th) that sales have dropped to 95,000 in the last quarter, compared to 126,000 in the previous three months.

Carphone Warehouse triggered a massive growth in the broadband industry by launching a free unlimited internet service under its TalkTalk trading name. The Times reports that the deal has now been emulated by rivals and Carphone Warehouse is now struggling.

When the TalkTalk offer was initially launched, a surge of demand led to customer service problems. However, Carphone Warehouse has spent heavily on improving that sector of the business.

Last month, it was reported that Carphone Warehouse was preparing itself for a loss of custom as the 18-month contracts on the TalkTalk service start coming to an end.



Tuesday, 9th October 2007

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