Tesco slashes broadband to £2 a month

15 May 2013

Tesco is to undercut its rivals in the broadband market by slashing the price of its service to just £2 a month – around half the price of a single online movie rental.

It makes Tesco the cheapest unlimited broadband available that doesn't require consumers to pay for an additional telecoms service such as a mobile phone contract.

There are no download limits and Tesco Clubcard customers will also receive one Clubcard point for every £1 spent. Tesco has also flagged up its UK customer service operation as a plus point, and if people aren't happy with the service within the first three months, they will be able to cancel without penalty.

But customers will have to sign-up to Tesco's £14.90 a month line rental in order to get the £2 deal, which expires after a year – at which point customers will pay £6 a month for Tesco broadband.

It makes the total cost for Tesco's unlimited broadband and line rental £16.90, rising to £20.90 in year two.

A Tesco Broadband spokesperson said: "Slashing our broadband prices again this year means that for just £2 a month British families can download music, play games online and stream films to their hearts' content."

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But how good a deal is it?

The market in the UK is now more competitive than it has ever been and providers are working hard to attract new customers. Many, for example, offer more than just a standard broadband connection with extras such as WiFi access from BT, Sky and Virgin Media and even access to BT Sport from BT.

Dominic Baliszewski from broadbandchoices.co.uk said: "If you're looking for standalone broadband without these bells and whistles this offer is hard to ignore – plus there's the benefit of earning extra Clubcard points and UK-based call centres.

"But Virgin Media is currently offering six months free fibre optic broadband to new customers and Plusnet is offering nine months half-price broadband to new customers and throwing in £25 cashback."

He added that consumers should do as much research as possible before switching, including reading independent reviews and looking into contract lengths, fair usage policies and availability before deciding which provider is right for you. Then look at your own needs in terms of speed, usage and customer service and choose a package that suits them.

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