C&W took the decision to put the business up for sale following an increase in competition from rivals such as Carphone Warehouse and Orange, both of which now offer free broadband. Bulldog has nearly 118,000 subscribers; the business is estimated to be worth £50m.
The acquisition would cement an existing relationship, as C&W provides the Post Office’s fixed-line HomePhone service.
A Post Office spokeswoman confirmed that it was looking to expand its telephony offering, but would not comment on the possible acquisition of Bulldog.
The Post Office has expanded its product offering in recent years, as traditional reasons for visiting branches, such as road tax payment and pension collection, have been eroded. HomePhone is one of its most successful ventures; it has also diversified into selling electrical goods.
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