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Carphone Warehouse buys AOL UK

TalkTalk owner faces down service criticisms with key buy-out

Written by Paul Allen

Computeractive, 11 Oct 2006

Carphone Warehouse has bought the internet service provider (ISP) AOL UK.

The company, which also owns the TalkTalk brand that has been heavily criticised for failing to meet demand for its service, paid £370m and will get 1.5 million broadband customers from the deal. A further 600,000 AOL UK subscribers remain on dial-up, according to the BBC.

However, unlike TalkTalk, which Carphone Warehouse has promised will be free for life subject to subscription to a home phone service, AOL UK subscribers will continue to pay subscriptions.

AOL UK will retain its name, but the move will propel Carphone Warehouse into the top league of UK broadband providers.

Carphone Warehouse published figures this morning showing that costs relating to the TalkTalk offer would be £20m more than anticipated.

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