News releases

Tesco Telecoms and Cable&Wireless Worldwide today announced a new five year deal engaging Cable&Wireless as the retailer's Wholesale Broadband Network provider.

Cable&Wireless will supply Wholesale Broadband services to support Tesco's broadband propositions, assisting the business in becoming one of the UK's leading providers of consumer broadband and phone services.

The partnership will enable Tesco Telecoms to develop propositions with very competitive pricing, attractive services and best in class customer service. It will also 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.

This provides Tesco Telecoms with a huge opportunity to develop its services within this market place and bring simplicity, service and value to the consumer telecoms' market to make it the number one broadband and home phone choice for Tesco shoppers.

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 delighted to be helping one of the most powerful brands in the UK to enhance its broadband offerings and we're thrilled to be providing the service. We're absolutely focused on putting our customers' requirements at the heart of our business and delivering great service - clearly, this is an approach that resonates with Tesco."

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About Tesco Telecoms

Tesco Telecoms offers simple, straightforward telecoms services with great value tariffs. Customers can benefit from our mobile network, home phone service, internet access and an internet phone service. Tesco Telecoms also offers a wide range of telecoms products in store, online and through our rapidly expanding estate of Phone Shops.

Our mobile network, Tesco Mobile, was launched in 2003 as a joint venture with O2. It is currently the fastest growing pay as you go mobile network and was ranked as the number one network for customer service (Which? Magazine 2009).

For more information on Tesco Telecoms please go to www.tesco.com

About Cable&Wireless Worldwide

Cable and Wireless plc is one of the world's leading international communications companies. It operates through two standalone business units – Worldwide and CWI.

The Worldwide business (formerly Europe, Asia & US) specialises in offering high quality communications services such as IP, data, voice and hosting to large enterprise, reseller and carrier customers. It operates globally, with core markets in UK, Asia and EMEA, and provides connectivity in 153 countries.

CWI is an owner and operator of leading regional telecoms businesses. Headquartered in London, it operates businesses through four regional operations the Caribbean, Panama, Macau and Monaco & Islands delivering world class service and efficiency. CWI is a full-service telecommunications provider offering mobile, broadband, and domestic and international fixed line services, as well as enterprise and managed service solutions.

For more information about Cable&Wireless, go to http://www.cw.com

Joanna Kinloch, Tesco Telecoms

Mobile: 07770 435 943