Since it is already widely known that around £1 in every £7 spent in the UK goes into the tills at Tesco, it is no surprise that the retail giant is looking at winning a share of the home broadband market. Tesco has had success as the provider of mobile telephone services for several years now and recently expanded its portfolio of products with the addition of mobile broadband, but it is clear that there is more to come.

Having opened the doors to mobile broadband customers a year ago it has offered many competitive deals and began giving away free laptops with its longer contracts in mid 2009. Now Tesco will be adding its name and branding to home broadband in what could be an extremely lucrative step for the company if it is handled correctly.

As with its mobile phone and mobile broadband services, Tesco will be piggybacking on the networks and infrastructure of another firm in order to offer home broadband to customers. In this instance it is Cable and Wireless who will supply the service, putting Tesco in direct competition with the many BT broadband deals that are currently available.

Tesco is allegedly hoping to take advantage of the market sentiment highlighted in recent surveys in which significant customer grievances appear to be associated with many of the mainstream home broadband providers. With many customers looking to switch from their existing providers to greener pastures, there is a real chance for Tesco to tap into a disgruntled market that seems to be in need of a change as well as a good deal or two on home broadband.

The addition of Tesco home broadband to the marketplace can only be a good thing. The price of BT broadband deals should fall across the board if Tesco adopts its usual aggressive pricing strategies.