The Post Office has revealed that its expected move into the mobile phone market was inspired by the success of its broadband offerings.

Speculation is rife that the Post Office is to start providing a mobile phone service to customers, as it continues a move into the telecoms market.

And the Guardian reports that the decision is inspired by the popularity of the Post Office's broadband service, which has now attracted 500,000 customers since 2007's launch.

Explaining the factors behind the quick growth of the Post Office's broadband customer base, the newspaper's communications editor Richard Wray said the service was "particularly popular among lower income households, as it allows consumers to pay cash at their local branch rather than signing a direct debit".

IT Pro Portal reports that the Post Office is considering bundling computers with their home broadband packages.