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Tesco Mobile, the supermarket group’s joint venture with O2 (a subsidiary of Telefonica) is the UK's fastest growing mobile phone service provider and is engaging in some aggressive strategies to grab market share.



Earlier this week, Tesco announced plans to bundle home phone packages and broadband deals through a new 5-year deal with Cable & Wireless. This will put the supermarket chain in direct competition with broadband providers like Carphone Warehouse, BT, and Virgin Media, who are expected to lower prices in response.



Tesco says that it aims to become one of the top telcos in the UK, seeking 10% of the market which is worth £22 billion every year. The home phone and broadband packages are a key part of this strategy.



Tesco also announced their plans to start selling Apple's iPhone "shortly". Tesco is still finalising the details with Apple, but says that it hopes to start sales before Christmas, and is expected to offer the handsets at a significant discount.



This is disappointing for Orange and Vodafone, who recently won rights to sell the iPhone after an exclusive deal with O2 expired.

Tesco is demonstrating its commitment to growing its telecom business by increasing the number of specialist mobile phone shops in its larger supermarkets from 100 by the end of this year to 200 by the end of 2010.