Tesco signs up C&W for broadband push

Thu 19 Nov, 2009 11:07

LONDON (Reuters) - Tesco, Britain's biggest retailer, has signed up Cable & Wireless to help it provide broadband and home phone services as part of its drive to increase revenues from non-grocery businesses like telecoms.

The supermarket group, which is holding two days of seminars for analysts and investors on its retail services ambitions, said on Thursday the five-year deal would allow Tesco Telecoms to step up expansion outside of its mobile phone business.

"It will also allow for the provision of bundled broadband and home phone services from Tesco for the first time," it said in a statement.

Tesco Mobile was launched in 2003 as a joint venture with Telefonica's O2 and is currently the fastest growing pay-as-you-go mobile network, the firm said.

Tesco, the world's third-biggest retailer, said in July 2008 it planned to make annual profits of 1 billion pounds from its retail services unit, which includes telecoms, online and home shopping as well as banking, over an undisclosed number of years.

($1=.5946 Pound)

(Reporting by Mark Potter; Editing by Hans Peters)