While there is no doubt that Carphone Warehouse, the owner of the TalkTalk Broadband operation, has been very successful over the last few years, the broadband division has perhaps underperformed in the eyes of many. Under significant pressure from BT, Sky and Virgin Media the TalkTalk brand is set for a relaunch and a significantly improved marketing budget.
Even though there has been talk that Carphone Warehouse is looking to “spin-off” it’s broadband operation in the future, the company is looking at a complete overhaul of the operation in the short term. The TalkTalk Broadband operation has received mixed press coverage over the years with a disastrous “free Internet” service receiving significant complaints due to poor quality. The £370 million acquisition of AOL UK brought in over 2 million new Internet customers although many believe the company overpaid.
The overhaul of the TalkTalk Broadband service will include significant promotions, marketing and TV sponsorship deals along with an array of competitively priced broadband bundles for existing and new customers. There is no doubt that the critical mass achieved through the acquisition of AOL UK has pushed the business into a different league in terms of clients, Carphone Warehouse has yet to see a significant return on investment.