The Post Office, which recently started offering mortgages, is to enter the broadband market this week with a service offering access speeds of up to 8MB. Customers will be able to pay for the deal in advance at any of the 14,000 post offices across the UK.
The group says the initiative is aimed at the over-50s, who want a simple broadband deal from an established high-street name.
The service will be supplied through the network of another big brand, BT. The two groups have signed a five-year agreement. Some £9m will now be spent by the Post Office on marketing.
Customers will pay from £20.95 per month, and this is described by price-comparison site uSwitch as expensive – £72 a year more costly than the cheapest broadband deal on the market, from Tiscali.
"It is clear that the Post Office is not competing on price, and its approach is to trade on its established name and high-street presence," said Steve Weller, spokesman for uSwitch.
Meanwhile, the Post Office has announced it is launching a life insurance range. The level- and decreasing-term products will offer up to £500,000 of cover; the Post Office says that premiums will start from as little as £5 per month.
The group's life insurance policies will be underwritten by Norwich Union.Reuse content