Tesco is aiming for turnover of £2bn a year from telecoms services after signing a deal with Cable & Wireless.
The retailer will offer broadband and telephone packages with competitive pricing under the five-year deal with C&W.
"Tesco Telecoms offers simple, straightforward telecoms services with great value tariffs. Customers can benefit from our mobile network, home phone service, internet access and an internet phone service. Tesco Telecoms also offers a wide range of telecoms products in store, online and through our rapidly expanding estate of Phone Shops," said Tesco.