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| Version 0 | Version 1 |
|---|---|
| Carphone Warehouse buying AOL UK | Carphone Warehouse buying AOL UK |
| (10 minutes later) | |
| Carphone Warehouse has won the auction to buy the UK's third-largest internet provider, AOL UK. | Carphone Warehouse has won the auction to buy the UK's third-largest internet provider, AOL UK. |
| BBC business editor Robert Peston said Carphone Warehouse, owner of the TalkTalk broadband and phone offering, was paying £370m for the operation. | BBC business editor Robert Peston said Carphone Warehouse, owner of the TalkTalk broadband and phone offering, was paying £370m for the operation. |
| AOL UK has 2.1 million customers across the country - 600,000 on dial-up and 1.5 million with broadband connections. | AOL UK has 2.1 million customers across the country - 600,000 on dial-up and 1.5 million with broadband connections. |
| Carphone Warehouse, which runs the UK's largest chain of mobile phone stores, first moved into broadband in April. | Carphone Warehouse, which runs the UK's largest chain of mobile phone stores, first moved into broadband in April. |
| It will be keeping the AOL name and the US firm's policy of charging customers. | It will be keeping the AOL name and the US firm's policy of charging customers. |
| Debt extension | |
| Carphone Warehouse is funding the acquisition through an extension of its existing debt facilities, and will keep AOL UK's management and infrastructure. | |
| AOL UK is being sold by its American parent company Time Warner. | AOL UK is being sold by its American parent company Time Warner. |
| News of the deal came after Carphone Warehouse said strong demand for its existing TalkTalk broadband offer meant it was costing £20m more than originally expected. | |
| The firm has had problems dealing with what it said was "unprecedented" consumer reaction to the service. | |
| The UK's largest residential internet provider is currently NTL, which has 2.9 million residential customers, followed by BT on 2.2 million. | The UK's largest residential internet provider is currently NTL, which has 2.9 million residential customers, followed by BT on 2.2 million. |