A spokesman from the Post Office said it was too early to say whether it would offer a mobile service. "It's something we are looking at but still very much in the planning stage," she said.
The Post Office's residential broadband package has proved a successful part of its business and currently connects 500,000 people to the internet, a year after its launch.
The Post Office recently reduced its broadband prices and believes it is benefiting from the economic downturn as consumers across the social spectrum look to reduce costs.
The broadband service offered by the Post Office has been especially popular with lower income households because it allows customers to pay with cash at local branches rather than sign up to a direct debit.
Customers can choose broadband and phone packages from £19.95 a month, which include evening and weekend landline calls and weekend calls to mobiles and 20 foreign countries.
Eighty per-cent of Post Office broadband users are new to broadband, with more than half new to the internet. The Post Office is looking at ways to make it easier for households to get a PC to expand the coverage of broadband even further.
United Kingdom
Post Office plays down mobile service plan
LONDON - The Post Office has distanced itself from reports today that it is considering launching a mobile phone service, insisting it is concentrating on its residential broadband and fixed-line phone services.
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