Mobile phone giant Vodafone announced it would enter Britain's cutthroat broadband market by launching its Vodafone at Home service to UK contract customers on January 8th.
The British-based firm said today that the up-to-8 Mb (megabits) download speed service would cost £25 ($47.70) a month and include line rental, unlimited broadband, landline calls at anytime to another UK landline, 25 per cent off calls to mobiles and a modem.
It will also provide a free to call technical help line. Vodafone's offer does not include a mobile handset.
Until recently, Britain-based Vodafone had prided itself on being a "pure play" mobile operation, unencumbered by a declining fixed-line business. But as fixed and mobile businesses move to cheaper, combined services, the firm has had to change tack.
Vodafone is offering the high-speed Internet access via a deal with the wholesale arm of telecoms firm BT Group. It joins mobile rivals that are looking to attract customers by enticing them with all-in-one telecoms packages.
France telecom-owned rival Orange recently announced a deal including free broadband when customers sign up to a £30 mobile phone contract. Carphone Warehouse and pay TV firm BSkyB have both launched cut-price packages as firms outside the traditional telecoms arena encroach on the market.
In May, Vodafone said it was aiming to get up to 10 per cent of its annual revenues over the next three to four years from its new "Mobile Zone" businesses, including converged fixed-mobile Internet services.
Vodafone is already BT's partner for the former monopoly's fixed-mobile phone service.