Tesco is all set to hit the broadband market and pose a serious threat to the existing service providers in Britain. According to a new announcement by the supermarket, it has decided to enter the bundled consumer broadband sector in a few months’ time.

The supermarket has recently entered into an agreement with Cable & Wireless for offering broadband services on a wholesale basis for the next five years. This will enable Tesco to offer a broader range of services, inclusive of services like home phones. It will also make sure that the company is no more dependent upon the major broadband providers in the market. Tesco’s entry is also expected to bring down the overall prices and give a tough competition to the existing providers.

Tesco has offered similar deals in the past as well, outside its major presence in the groceries industry. One of its deals was offered in collaboration with Virgin Media, a major service provider in the UK. However, now Tesco is capable of using its retail presence to give a tough competition to its competitors without having to be bound with any one of them.

Lance Batchelor, the telecoms chief of Tesco, pointed out that given the present condition of the broadband market, there is a high possibility of Tesco making its presence felt in the market in a short while. He added that Tesco has been running a mere one fifth of the existing broadband and fixed phone market, and that this scenario is going to change now.

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