Tesco is to take on broadband telecoms players such as BT, TalkTalk and Virgin media as it targets extra profits of £200m annually.
The giant grocer has struck a five-year deal with Cable & Wireless to offer combined broadband and home phone packages. Tesco will also double its number of in-store phone shops to 200 by the end of next year and ultimately to have 500.
Tesco is targeting eventual sales of £2bn a year and profits of £200m from broadband and landline services, which are a step on from the established Tesco mobile business.
Tesco’s plans emerged as the retailer held an analysts’ day focused on its growing services operations.
Head of Tesco Telecoms Lance Batchelor told the Daily Telegraph: “We are actively looking at rolling out our telecoms proposition worldwide and there are conversations under way with potential suppliers for mobile and broadband.”
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