Reports in The Sunday Times have rumoured that mobile retailer Carphone Warehouse will start installing equipment in BT's exchanges and move into the LLU market.

The retailer already operates a broadband service and is thought to have around 70,000 customers, but it like most ISP's, resells products from BT wholesale. Being a potential large player in the broadband market installing it's own equipment will allow it to operate with greater margins although the initial investment is substantial.