In a move which had been expected for some time it has been revealed that Carphone Warehouse is to separate its broadband business and its mobile phone business. The TalkTalk operation, which includes fixed line and broadband operations, will be spun off into a separate company both of which will be listed on the UK stock market. This is something which has been rumoured for some time and indeed the company has hinted on more than one occasion that this would be the preferred route.
However, due to the economic situation in the UK it appears as though the split may take some time to finalise as credit facilities and other shared operations will need to be dismantled as cost effectively as possible. Even though the UK recession is rumoured to be coming to an end, credit facilities in the UK are not as competitive as they have been in the past and it may be more expensive to arrange separate facilities in the current environment.
Interestingly, Carphone Warehouse also confirmed that the broadband operation has attracted a net 74,000 new customers in the first three months of 2009 which is a very credible performance given the current economic climate.