Industry rumours suggest that Orange will follow Carphone Warehouse into the 'free' broadband market next week when it officially announces its merger with Wanadoo. 

Carphone Warehouse introduced its broadband service back in April for customers who also take Talk Talk's fixed line telephone services.

Wanadoo's 'free' broadband service will allegedly be offered to the company's two million broadband and dial up customers if they also sign up for an Orange mobile phone account.

As well as the mobile phone contract and broadband access, the full deal is rumoured to include a landline service that offers free calls to other Orange customers.

The combined service is expected to be offered to customers on a long contract that could involve them signing up for 18 months or longer.