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Vodafone makes UK broadband move Vodafone makes UK broadband move
(about 2 hours later)
Mobile phone operator Vodafone has said it is to enter the UK fixed-line broadband market after striking a deal to use infrastructure from BT.Mobile phone operator Vodafone has said it is to enter the UK fixed-line broadband market after striking a deal to use infrastructure from BT.
The contract, worth about £400m to BT, means Vodafone does not have to invest in a fixed-line network of its own. The contract means Vodafone does not have to invest in a fixed-line network of its own.
Vodafone said it hoped to launch the new service before the end of the year.Vodafone said it hoped to launch the new service before the end of the year.
It said the move would enable its customers to benefit from bundled packages of mobile and broadband services nationwide.It said the move would enable its customers to benefit from bundled packages of mobile and broadband services nationwide.
Busy marketBusy market
The company said that the deal was a "strategically important step in the evolution of Vodafone's business".The company said that the deal was a "strategically important step in the evolution of Vodafone's business".
A number of other mobile operators have begun offering bundled packages of services to their customers.A number of other mobile operators have begun offering bundled packages of services to their customers.
Both Carphone Warehouse and BSkyB have announced cut-price broadband packages.Both Carphone Warehouse and BSkyB have announced cut-price broadband packages.
But surviving in this marketplace is a challenge. Stiff competition in the sector prompted the UK's second-largest telecoms group, Cable & Wireless, to leave the retail broadband market recently.But surviving in this marketplace is a challenge. Stiff competition in the sector prompted the UK's second-largest telecoms group, Cable & Wireless, to leave the retail broadband market recently.