Tesco pushes into broadband as drive beyond groceries continues
TESCO has set its sights on capturing a bigger slice of the broadband and home phones market as part of a drive to increase revenues from more profitable non-grocery markets.
The supermarket group said it had agreed a five-year deal with Cable & Wireless for the telecoms firm to supply it wholesale broadband services.
This will allow it to offer a more comprehensive range of products, including a combined broadband and home phone service for the first time which will step up its challenge to the likes of BT, TalkTalk and Virgin Media.
The deal is part of a drive by Tesco, which takes about one in every three pounds spent in Britain’s highly competitive grocery market, to tap new sources of often higher margin growth, whether abroad, online or in services like banking and telecoms.