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The Sunday Times reports that the mobile phone retailer plans to invest 'millions of pounds' on installing local loop unbundling (LLU) kit in BT exchanges.

Carphone Warehouse currently has around

The company launched a landline phone service, TalkTalk, in 2003 that now has over one million customers and recently added TalkTalk Mobile which incudes unlimited free calls to and from its landline service. Adding Internet-based calls would enable to cut costs and provide a still cheaper service.

After years of much talk and little action, LLU is finally beginning to take off, providing faster connections and in some cases lower prices than are on offer through BT's wholesale ADSL products. However although broadband users in the major towns and cities are benefiting, LLU is likely to create a new digital divide, with services unlikely to reach rural areas for reasons of both economics and technology.