Can Carphone Warehouse talk the TalkTalk?
Carphone Warehouse (CPW) has launched a free broadband offer that has been hyped as intensifying a broadband price war in the already highly competitive UK broadband market. The marketing angle will not come as news to the industry, as the service will not be free but cost GBP20.99 a month for line rental, broadband and free voice calls over an 18 month contract. Although the impact of the offer on the UK broadband market may not be immediate (broadband penetration in the UK was already 35% in Q4 2005 and customers are typically locked into contracts for several months in advance), its impact will extend significantly into the fixed voice market as customers are potentially attracted away from BT to Carphone Warehouse’s service. Carphone Warehouse’s impact on the broadband market may not be immediate, but their large customer base, high street retail branding, mobile presence and marketing savvy will make them a significant threat to BTs fixed voice revenues.
