Talktalk to be separated from Carphone Warehouse mother ship

Carphone Warehouse has announced that it will free its Talktalk landline and broadband business and pledged to offer it more autonomy in a competitive market.

The quests for more impartiality and more business partnerships drove the separation; CW and Talktalk will now operate as two distinct businesses.

The move might be partly explained by the fact that Talktalk as a unit, is not doing particularly well with increased expenditures and a slowdown in broadband connections.

In the meantime, the retail division, Carphone Warehouse, enjoyed improved sales with a 12 percent increase in mobile connections.

The partition will allow Carphone Warehouse to collaborate more effectively with Talktalk's rivals like Virgin Media or Sky.

Talktalk has acquired a number of broadband companies as it seeked to grow its user base faster with AOL, Tele2 and OneTel members.

Carphone Warehouse has been rumoured to be the target of a buy out by US Giant Best Buy which is looking to expand in Europe.

At the same time, Tiscali UK is said to interest CPW as the Italian Telecoms giant looks to exit the UK Broadband market and cut its costs.