Vodafone has become the latest phone group to enter the UK broadband market.
Its £25 per month Vodafone At Home deal offers up to 8Mb unlimited broadband and inclusive landline calls to those on a monthly Vodafone contract.
A number of other mobile firms like Orange now offer bundled packages of broadband services to their customers.
Carphone Warehouse and BSkyB also recently entered the UK broadband market, which now accounts for more than 69% of all internet connections.
Stiff competition
Analysts Point Topic predict that there could be as many as 2.5 million new broadband customers up for grabs in the first six months of 2007.
But surviving in this competitive marketplace is a challenge, and the intense level of competition prompted the UK's second-largest telecoms group, Cable & Wireless, to leave the retail broadband market recently.
Unlike many rivals, Vodafone will rent internet access from BT rather than build its own broadband network.
The explosion of broadband deals has led to some customers complaining that they have not received a good deal.
In December 2006, telecoms regulator Ofcom vowed to crack down on mis-selling by phone and broadband providers.
Ofcom said it was prepared to use large sums to fine firms which broke industry rules, to ensure public confidence in the sector was maintained.
Rules making it easier for people to change supplier come into force in February and firms flouting these rules, and other regulations will potentially face a maximum penalty of up to 10% of their turnover.
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