Focus on: Tesco launches £2.50 unlimited broadband

While the three main broadband providers have been busy locked in a winter price-war, Tesco has stolen the show by offering the cheapest 12-month broadband package on the market.

We take a look in more detail...

What’s the deal?

Tesco is offering unlimited broadband for just £2.50 per month – or, as the supermarket puts it – the price of a tube of toothpaste.

The deal comes with unlimited broadband access with download speeds of up to 20Mb. Customers will have to take out Tesco line rental as part of the package, which costs an additional £13.75 per month. However, this does include free evening and weekend calls – and you won’t have to change your existing number.

You will also receive a free wireless router as part of the package.

ClubCard holders will be offered the additional incentive of three reward points for every £1 spent on broadband. You can then even pay for their broadband using your ClubCard points.

The Tesco deal is available either on a 30-day rolling contract, subject to a £40 set-up fee, or a 12-month contract, with no set-up costs. After this first year the price jumps to £6.50 per month plus line rental.

This offer is available until May 31, 2012 and is available now via MoneySupermarket.

What are the alternatives?

The Tesco deal is currently the cheapest broadband and phone package available working out at just £195 over the course of the first year including line rental if you opt for the 12-month contract.

If you take the 30-day rolling contract your first year’s outlay will be £235 when you factor in the £40 set-up fee.

However, if you are already a Sky television customer then its Sky Broadband Unlimited with calls may be a better option as this offers broadband as well as evening and weekend calls for £3.75 per month but line rental is just £12.25 per month.

This means that your 12-month costs for internet access and phone calls will be just £192, which is £3 less than the cheapest Tesco deal.

One of the downsides to this deal is that even the cheapest Sky package (the Entertainment package) will add an extra £20 per month to your outgoings – though if you are looking to subscribe to Sky television in the near future its broadband package could prove a better deal overall.

What’s the verdict?

The Tesco Broadband plus evening and weekend calls is undoubtedly a great deal and could be the catalyst for better deals from other providers.

However, as is the case with other providers, the price becomes a lot less competitive after 12 months so you may have to switch again after this time.

You can compare broadband deals at any time using MoneySupermarket.

And before you commit to any broadband deal, use our broadband speed test  to check exactly what your connection speed is as this can vary greatly from the rate advertised by providers.

If you find that you are suffering from slow connection speeds it is also worth checking out our tips on how to speed up your broadband.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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