Tesco Telecoms and Cable&Wireless Worldwide have agreed a new five year deal engaging Cable&Wireless as the retailer's Wholesale Broadband Network provider. The partnership will allow for the provision of bundled broadband and home phone services from Tesco for the first time.

The broadband market continues to grow with a million new connections in 2008. However, there is significant customer dissatisfaction with service and experience resulting in churn rates of around 20% per annum.

According to Tesco Telecoms it has an opportunity to develop its services within this marketplace and bring 'simplicity, service and value' to the consumer telecoms' market.

Lance Batchelor, Chief Executive Officer of Tesco Telecoms and Tesco Mobile said: "We're delighted to be partnering with Cable&Wireless for our broadband and home phone services. We share a commitment to providing excellent customer service and the new network capabilities will allow Tesco Broadband to offer enhanced services for our customers across the UK."

Jim Marsh, Chief Executive Officer, Cable&Wireless Worldwide, commented: "This is a landmark contract. We're absolutely focused on putting our customers' requirements at the heart of our business and delivering great service."