Vodafone has denied rumours that it is planning to enter the fixed-line market in the UK by purchasing Tiscali. The UK's Sunday Telegraph reported yesterday that Vodafone were considering buying a "major UK internet service provider".

The company, which is set to announce the conclusions of a far-reaching strategic review next month, is understood to have identified Tiscali's UK operation, which has 1m broadband customers, as one possible acquisition target. Any take-over would be in response to an expected move by Orange to offer "free" residential broadband to its mobile customers through Wanadoo, its sister company.

Vodafone have since downplayed these reports.