Tesco Starts Broadband Price War with £2.50 a Month Broadband

While companies like Virgin Media are trying to capture broadband market by offering higher and better surfing speed, Tesco is looking the other way. The retailing giant is planning to use price factor and started offering low price broadband connection to its Clubcard loyalty scheme members. These customers may opt for 'unlimited' broadband package at mere £2.50 a month. Tesco has about 16 million subscribers for its Clubcard program.

With this offer, Tesco has posed a direct challenge to BT, which offers broadband connection at introductory £3.50 a month pricing. Thus Tesco is claiming that it is offering the cheapest broadband plan in the country. However, there are some hidden expenses as well. You will be required to pay £40 as set up fee, but this fee would be waived if you opt for 12 month contract. Also £2.50 a month pricing is applicable for only 12 months and after that it would increase to £6.50 a month.

But you need to read the fine print as well. Comparison site Broadbandchoices.co.uk has warned the consumers that they need to be aware of true meaning of 'unlimited' access. Tesco reserves the right to levy extra charges if a customer consistently downloads more than 100 GB of data in a month.