WH Smith said it had decided to extend the deal because of the success of the partnership, which began in 2003 with CD-roms offering internet access to Tiscali.
Ian Sanders, head of commercial development at WH Smith, said: "By extending this offer to include fixed line, we hope to be able to fulfil all of our customers' home telephony requirements and offer genuine savings against BT."
The special offers for WH Smith customers include a 1MB broadband and talk time package for £19.49 a month, and a talk time offer at £7.49 a month -- usually priced at £9.99.
It will be backed with point-of-sale materials at 700 WH Smith high street and travel stores.
Mary Turner, CEO Tiscali UK, said: "Both businesses have derived huge value from the relationship and it has helped us deliver great value to both our customers.
"We will be working closely to ensure that we continue to build sales and continue to bring innovative packages to our customers."
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