Carphone Warehouse is preparing a fresh assault on the broadband market after claiming a ‘significant’ improvement in the way it deals with customers.
The company’s TalkTalk broadband deal – which offers customers ‘free’ broadband if they pay £20 a month for a landline phone – was initially plagued by problems after it launched last April.
Carphone Warehouse struggled to keep up with demand and by June it was reported that some customers were waiting up to three months for a broadband connection.
Chief Executive Charles Dunstone was later forced to admit the offer of free broadband had created a customer service ‘nightmare’ for the firm.
But the company said today that its rate of growth in broadband had slowed as it focused on customer service processes and as a result of normal seasonal pressures.
Carphone Warehouse said: ‘We have now significantly improved our provisioning and customer service processes, and are ready to increase the rate of recruitment once more.’
TalkTalk has now signed up 632,000 subscribers, of which 540,000 have now been connected.
Last month, Mr Dunstone told customers that Carphone had made ‘significant strides’ but that it had some way to go until it became ‘best in class’.
He added: ‘Most notably, we now have no queues for connection and easy access to our call centres with little waiting to be answered.’
Carphone is now the UK’s third largest broadband provider after its £370 million acquisition of AOL UK gave it a total base of 2.2 million residential broadband customers.
The mobile phone chain also revealed losses from offering ‘free’ broadband to 625,000 of its TalkTalk customers will hit £70 million this year.