Carphone Warehouse reveals cost of subsidy cuts

NEWS Carphone Warehouse has announced that demand for pre-paid handsets has fallen 40 per cent since major UK operators cut their subsidies on the phones. The market share of pre-paid handsets has fallen by 40 per cent in three months as companies try to force more users into contract -based subscriptions, with May's cut in subsidies being the most forceful part of their strategy. However, the number of connections is still rising, albeit at a slower rate than previously, and UK phone retailer Carphone Warehouse will today announce that it is in good shape, according to the Financial Times. Customer connections have risen for Carphone Warehouse by 18 per cent in June and July.