Tesco To Spark Cheap Broadband & Phone Price War
Tesco has outlined plans to offer cheap broadband and home phone packages to households across the UK which could spark a new price war amongst the UK’s leading ISP’s including TalkTalk, BT & Virgin Media.
The plans come as the retail giant announced a new 5 year deal with Cable & Wireless for the provision of wholesale broadband and phone services under the Tesco brand.
Tesco believes it can build an annual £2 billion turnover with profits of £200 million from the new broadband and home phone landline services.
Commenting on the announcement, the Chief Executive of Tesco Telecoms, Lance Batchelor said, “Tesco Mobile has shown that we can be successful in telecoms if we have the right partners and the right offer. The new agreement with Cable and Wireless enables us to offer very competitive pricing”.
Package and pricing information has yet to be revealed by Tesco, though it is thought existing Tesco Clubcard holders will get preferential broadband and phone deals.