Tesco Telecoms and Cable&Wireless Worldwide have signed a new five-year deal.
Cable&Wireless will supply wholesale broadband services to support Tesco's broadband propositions so that Tesco can offer competitive pricing, attractive services and improved customer service.
It will also allow for the provision of bundled broadband and home phone services from Tesco for the first time.
Currently Tesco promotes mobile broadband offers from rival network operators such as O2, Vodafone, 3 and Orange.
said there is ‘significant customer dissatisfaction with service and experience' from broadband providers resulting in churn rates of around 20% per annum.
Tesco said the deal would provide it with ‘a huge opportunity to develop its services'.
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