A price war could be on the horizon following an extremely aggressively priced broadband deal from the grocer giant.

Tescos ‘£2.50’ unlimited broadband

British grocer Tesco has launched an aggressive broadband package which promises ‘unlimited’ broadband for £16.25 a month, dramatically undercutting rivals such as BT.

The deal requires telephone service is switched to Tesco and allegedly £13.75 of the fee is made up of the line rental with the broadband connection priced at an unfeasibly low £2.50.

Of course this is the standard British ISP ‘unlimited’ which isn’t unlimited at all, and actually means around 100GB according to a ‘fair use’ policy but even so, the BT Internet charges nearer £30 for a 10GB hard capped broadband connection.

There’s also a points bonus on Tesco’s reward scheme Clubcard. Tesco said that the deal is available to the 31st of May.

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