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Tesco Launches £2.50 A Month Broadband Deal

Subscribers to supermarket chains low-price deal will have to contend with additional line rental and fair usage policy

Supermarket giant Tesco has announced a £2.50 a month budget broadband service for its Clubcard holders.

However, there is a catch. Customers must also pay line rental of £13.75 a month, which pushes the total monthly cost up to £16.25, and will be subject to a fair-usage policy.

A Valentine’s gift

Clubcard-holding customers who are not put off by the additional cost – which even when taken into account still puts Tesco among the cheapest broadband providers in the country – will receive the promotional price for a 12-month period, after which it reverts to £6.50 a month plus line rental.

“With so many broadband offers and deals out there, it can feel like it’s all just too complicated finding the one that’s right for you,” said Tesco on their site. “That’s why we offer simple packages which are great for emailing, downloading music and movies, online shopping, sharing photos among many other things.”

Tesco’s package provides a wireless router inclusive in the monthly cost, has no set-up fees, and customers gets free evening and weekend calls. However, the advertised unlimited downloads are capped by a Fair Usage Policy (FUP), which is set at 100GB a month.

Tesco claims that speeds of up to 20Mbps will be available depending on area, and customers will be able to use their loyalty cards to gain three points for each pound spent.

“We’re sharing the love this Valentine’s day by offering loyal customers this unbeatable offer,” a Tesco spokesman said in a statement. “It’s our Valentine’s gift to the Tesco families out there, we hope it goes some way to lightening the financial load this year.”

Tesco’s initial 12-month price drop could become permanent or slightly altered depending on a decision from the European Commission regarding BT’s Openreach. Last week, Ofcom put forward plans to reduce the price BT could charge other operators for using its lines and should the proposals be implemented, competitors would be able to reduce costs for consumers.

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