Carphone Warehouse buys AOL UK

Carphone Warehouse is to buy the UK's third-largest internet provider, AOL UK reports the BBC.

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.

Carphone Warehouse, which runs the UK's largest chain of mobile phone stores, first moved into broadband in April.