A fast-growing number of firms now offer broadband connections. Mobile phone retailer Carphone Warehouse is expected to announce the launch of a free broadband service soon.
The company looks poised to provide free access for customers who sign up to its 'Talk Talk' landline service, BBC reported.
A Carphone spokeswoman said that it could not comment on speculation, but it did have plans to expand its broadband service in 2006. The move could lead to a big shake-up among Internet providers.
The news comes after satellite broadcaster BSkyB confirmed recently that it is to start offering broadband connections from this autumn. BSkyB is also predicted to offer a number of low-cost deals, and it and Carphone Warehouse's move into the market is expected to start a price war.
The UK broadband sector is currently dominated by BT, AOL, Wanadoo and NTL.
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