According to a report in The Guardian, the Post Office is now considering expanding into mobile phone service provision following on from the success of its broadband service.

Having provided a home phone service along with the internet package for over a year now, the Post Office is considering branching out into the mobile market using one of the five major networks. Head of telecommunications, Martin Moran, said the service was 'still in the planning stage', but could be rolled out as early as next year.

Telecommunications has become a significant part of the Post Office's revenue system, which aims to land 1 million broadband customer by 2011. Moran also suggested that the current downturn in economic stability is actually working in the Post Office's favour as it reduced the price of its broadband package.

"In a funny sort of way the credit crunch is helping us," said Moran. "We have always wanted to be not the cheapest but certainly among the three cheapest in the market but still have excellent customer service."