Tesco pushes into broadband as drive beyond groceries continues

TESCO has set its sights on capturing a bigger slice of the broadband and home phones market as part of a drive to increase revenues from more profitable non-grocery markets.<br /><br />The supermarket group said it had agreed a five-year deal with Cable &amp; Wireless for the telecoms firm to supply it wholesale broadband services.<br /><br />This will allow it to offer a more comprehensive range of products, including a combined broadband and home phone service for the first time which will step up its challenge to the likes of BT, TalkTalk and Virgin Media.<br /><br />The deal is part of a drive by Tesco, which takes about one in every three pounds spent in Britain&rsquo;s highly competitive grocery market, to tap new sources of often higher margin growth, whether abroad, online or in services like banking and telecoms.