Carphone Warehouse is considering plans to spin off its TalkTalk broadband internet business according to weekend reports.

A demerger could see owners Carphone Warehouse separate completely the ISP TalkTalk from the high street mobile phone retailer.

The company's founder Charles Dunstone is expected to confirm this week that he wants to break up Carphone Warehouse as part of an overhaul of the company.

A move to list its broadband arm may not happen until late 2009 or later due to the current depressed economic climate.

TalkTalk has 2.8 million customers and is third-placed in the UK, behind BT and Virgin Media.

Carphone Warehouse is expected to report interim results this week.

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