TalkTalk broadband splits from Carphone Warehouse group

Broadband ISP TalkTalk is now a separate company, after the demerger with its parent company, Carphone Warehouse.

The largest fixed broadband service provider in UK after BT, TalkTalk offers broadband & phone packages to more than 4.16 million customers and has been a part of Carphone Warehouse which was founded by the Chairman Charles Dunstone about two decades ago.

After the split, the Carphone Warehouse, the second firm, will continue to operate as a retailer of electronic gadgets in UK. It has also tied up with US retailer giant Best Buy for international operations.

As a top broadband providing company, TalkTalk became popular for its free broadband offer a few years ago, however, free offer is now available only with Sky which gives a basic broadband plan free for its new digital TV customers who are covered by its own network.

Last year, TalkTalk made the acquistion of Tiscali broadband which was well-known for its brand of cheap home broadband packages, however, the brand ceased to exist, after Tiscali customers have been fully migrated to Talk Talk network.

New TalkTalk will need to face many challenges ahead. Its performance will depend on how it is able to negotiate with BT on the wholesale prices of the fibre based products from BT. If it does not survive in the fibre broadband race, it is possible that it could end up like another Tiscali in the cut throat market.

Talk Talk has recently removed P2P traffic shaping for its Pro customers who can make unlimited downloads without their speeds being throttled down even when accessing social networking sites.