Vodafone, one of the largest broadband providers in Europe is set to launch broadband and TV services in the UK.

The move comes as BT plan to launch a severe price war through its expected return to the mobile market.

The home broadband and TV market in the UK is already very crowded, with rivals including BT, EE, Sky and Virgin and customers don’t tend to change providers, analysts said.

"Vodafone will need to compete on price or on service, and it will be very tough for them to do that," said Mark Newman, chief research officer at Ovum.

The company is aiming for services to be in UK households from next spring.