Carphone Warehouse is set to become Britain's second largest broadband provider after it agreed to pay £236 million (E264m) for the UK assets of Tiscali. Carphone said it would be funded by its existing debt facilities and would raise its earnings in the current financial year to March 2010.

The move will also see Carphone move ahead of Virgin Media to become the UK's second largest broadband supplier behind BT. It is currently third with 2.7 million customers at December 31st.

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