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Thursday, September 07, 2006

Carphone: It never rains it pours

Carphone Warehouse got fined £245k today by the FSA for mis-selling of mobile insurance policies. Charles claims the regulator has used a “sledgehammer to crack a nut”, but I would say the regulator’s fine is a more like a “drop in the ocean” After all, the CPW insurance empire had a turnover of £116.1m in the year to 31/3/06 with a rather large “contribution” of £45.5m. I don’t know enough about the insurance business to comment whether these “gross profits” are high, but it looks that £245k is hardly going to place a dent on the figures.

It is getting bad for Charles Dunstone when TalkTalk is featured in the “investigative” section of the Daily Mirror. I love the fact that they have discovered the trick with free broadband "I think the catch is that their customer service and technical support teams do not exist. The phone numbers are merely a way for the company to earn money at 10p a minute while customers listen to endless repeats of a record from 1969." The irregulator, OFCOM, even confirms that this is an acceptable part of their business model.

On a personal front, I haven’t had voice service since Monday afternoon and my broadband connection is reaching new lows with download speeds at 751kbps.