Home phone users could be offered free broadband

10 April 2006

A phone company is reportedly preparing to announce the launch of a free broadband service for its home phone customers.

It is thought that Carphone Warehouse will reveal the move during an announcement about its broadband strategy later this week.

If initial reports are correct, the company could offer free broadband to all customers who sign up to its Talk Talk landline service.

The emergence of the possibility of free broadband to home phone customers has started speculation of a possible future price war in the broadband market.

BSkyB recently announced that it would be entering the broadband market soon as well.

Responding to press speculation, a spokesperson from the company said: "Sky does fully intend to be one of a new breed of broadband providers," adding that it aimed "to challenge the incumbent providers".

"We fully expect there to be speculation regarding our pricing structure, but we are not giving out any details until nearer the time," he added, according to the BBC.

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