Carphone Warehouse Will Split Off Broadband Business

Om Malik | Tuesday, November 18, 2008 | 7:41 AM PT | 0 comments

Nothing like a deep recession to get a company’s management to focus. Carphone Warehouse, a major retail chain in Europe, is going to de-couple its broadband (telecom) business from its retail operations, according to various press reports. In the UK, spin-offs are called “de-mergers.” Funny how a downturn prompts companies to change their tune from “free broadband forever” to “get me outta here.” Some analysts estimate that Carphone’s Talk Talk telecom business is worth around $2 billion. It is the second largest broadband provider in Britain. Carphone’s decision, however, shows that the entire mobile phone ecosystem is very prone to the economic downturn.

Leave a Reply

Editorial Masthead

Carolyn Pritchard
Managing Editor
Celeste LeCompte
Special Projects Editor
Desiree DeNunzio
Copyeditor
Om Malik
Senior Writer
Stacey Higginbotham
Staff Writer
Jennifer Martinez
Staff Writer
Wagner James Au
Contributing Editor
Liz Gannes
Staff Writer
Chris Albrecht
Staff Writer
Katie Fehrenbacher
Staff Writer
Josie Garthwaite
Staff Writer
Close
E-mail It