The Post office has aparently cut a massive deal with BT Wholesale to start providing ISP services. Essentially they're going to become a Virtual ISP sitting off BT in a deal reported to worth £750 million over the next four years.
The Post Office already offers some telephony services to 4000,000 customers and its planning on upgrading them. Effectively what we're talking about here is a nationalised ISP. It will be interesting to see what they set their price at and whether they try to undercut the market by subsidising the business with our money.