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Tesco’s £2.50 unlimited broadband: what’s it worth?

Tesco BroadbandTesco’s launch of a £2.50/month unlimited broadband service for Clubcard owners has set the Web alight with talk of a broadband price war, but what does it deliver?

It’s an up-to-20Mbps connection, and like other Tesco services there’s no monthly download limit, but there is a ‘fair use’ cap of 100GB per month.

The offer assumes you buy line rental from Tesco at £13.75/month and switch your phone service to them, with inclusive evening and weekend phone calls. Total price: £16.25/month.

The standard contract is 12 months, or there’s a £40 one-off charge to join on a 30-day rolling contract. You also have to be on a telephone exchange fitted with Tesco broadband equipment.

After 12 months, the service reverts to Tesco’s full price of £6.50/month plus line rental.

Tesco’s broadband provider, Cable & Wireless, isn’t included in Ofcom’s annual broadband speed report, but it’s worth checking Google for user accounts of its performance and customer service.

Tesco has also just increased its call charges, including an increase in calls to mobiles despite a drop in the the wholesale cost.

If you’d like to stay abreast of the latest broadband, phone and TV deals, follow the link to our updated strand.

UPDATE: Direct Save Telecom has now launched a £2.49/month broadband offer with £12.85/month line rental, on a 24-month contract.

UPDATE 16/07/2012: Primus Saver pitches 20GB broadband for £1.20/month, plus line rental with free evening and weekend calls.

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