Carphone Warehouse Will Split Off Broadband Business

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.

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