The Post Office is to become a mobile phone provider in a move it says will challenge existing operators.
The mailing retailer said its mobile service would launch, using EE's network, in the autumn and initially be rolled out to 50 branches, online, and over the phone before being extended nationally later in the year.
The Post Office said its offer was a response to an online survey it carried out, pledging it would deliver "great value for money and transparency" and complement its existing services in the telecoms sector.
These include Home phone and Broadband, which serve almost half a million customers.
It declined to give any further details on pricing plans.
Martin George, Chief Commercial Officer at Post Office, said: "Our research tells us that people are seeking greater value, with one in three of those surveyed saying they intended to move away from one of the mainstream providers for their next service.
"We believe we are in an ideal position to offer a genuine alternative with over a third (36%) also saying they would consider us as their mobile provider.
"Launching our own mobile service, using EE's network, is a significant milestone in the Post Office's journey of change and a testament to our continuing efforts to offer more essential services for our customers".
The announcement follows a £640m boost from the Government last year to support a transformation of the Post Office, which has already seen more than 2,200 branches revamped.
Post Office will become a mobile virtual network operator, a wireless communications services provider, by using EE's network to provide mobile services to its customers.
Mr George added: "Our network of over 11,500 branches combined with our online, and call centre presence, gives us the perfect platform to become one of the most credible providers of mobile services in the market."
The launch of Post Office's mobile service will complement its existing award-winning products and services including travel money, travel insurance, savings, mortgages, mails and government services.
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