Tesco launches unlimited broadband for £2.50 a month

John Fitzsimons
by Lovemoney Staff John Fitzsimons on 13 February 2012  |  Comments 14 comments

For just £2.50 a month you can enjoy unlimited broadband use from Tesco Broadband.

Tesco launches unlimited broadband for £2.50 a month

Tesco has launched a new broadband package, offering users unlimited internet for just £2.50 a month.

Inevitably, there is a slight catch. The deal is not available on a broadband-only deal – instead you’ll also have to sign up for Tesco to provide your landline telephone.

So what’s included in the deal?

Let’s start with the broadband side, For 12 months your internet coverage will set you back just £2.50 a month, so long as you quote the code HALFBB-C when ordering. After that period the broadband costs jump to £6.50.

There is no limit to your downloads, so it’s likely to appeal to those who like to download a lot of films or music.

Tesco emphasises that the speed you’ll enjoy depends entirely on your area, though where I live I’m told the broadband speed will be up to 20Mb. Given I live about as far from the exchange point as it’s possible to be, I know the chances of such speeds are minimal though. If you want to increase the speed of your internet connection, check out Speed up your broadband!

You also get a wireless router included free.

There are two phone packages to choose from. The first offers free calls in the evenings and at weekends. The second package covers all of your calls, whenever they are made, for £4.50 a month. In both cases line rental of £13.75 a month applies. You can also keep your existing number.

The packages are available on 30-day rolling contracts or 12-month contracts. If you go for the year-long deal, there is no set up fee. But if you go for a rolling contract a £40 set-up fee applies.

So in terms of monthly cost you are looking at an outlay of 16.25 a month for the evening and weekend calls package or £20.75 for inclusive anytime calls.

Who can get it?

The deal is exclusive to Clubcard customers, though that shouldn’t be too much of a barrier since it’s free to join the Clubcard scheme. All you need to do is pick up a form in store, or fill in the form here on the Clubcard website.

This offers a further bonus. For every £1 you spend on your package you earn three Clubcard points. Those points can then be spent in a variety of ways, including on your phone and broadband bill!

There are all sorts of ways to build up your Clubcard balance. Personally, I put all of my spending on the Tesco Clubcard credit card. Not only does it currently boast an excellent 15 months of 0% interest on purchases, but you also earn one Clubcard point for every £4 spent on the card.

How it compares

Below are the next five cheapest deals for both broadband and phone that I’ve found, courtesy of the Ofcom-accredited Broadband Choices comparison site. I’ve included line rental and set up costs.

Package

Speed (up to)

Usage limits

Calls package

Monthly cost

Total first year cost

Deal?

O2: The All Rounder (O2 customers of two years+  only)

20Mb

Truly unlimited

Evening and weekend calls

£16.25

£195

12 months half price broadband

Plusnet Value

20Mb

10GB

Evening and weekend calls

£16.23

£199.75

12 months half price broadband

TalkTalk Broadband & Phone Essential

24Mb

40GB

Evening and weekend calls

£17.05

£204.60

12 months half price broadband

Post Office Standard & Home Phone

8Mb

5GB

Evening and weekend calls

£21.40

£206.80

 

Sky Broadband Unlimited

20MB

Truly Unlimited

Evening and weekend calls

£17.25

£207

12 months half price broadband

As you can see, unless you’ve been a customer of O2 for more than two years, the Tesco deal is head and shoulders above the rest at the moment. I’ve been with O2 for a couple of years and the service has been so good I’m loathe to change. That said, I’d save a fair few pounds every month so I’m very tempted to give Tesco a go.

If you’re also thinking of moving your broadband, be sure to check out Switch your broadband in five easy steps.

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Comments (14)

  • gk141054
    Love rating 20
    gk141054 said

    O2 should read "truly unlimited (unless you download anything, then you might as well go back to dial-up instead)"

    Report on 13 February 2012  |  Love thisLove  0 loves
  • fenemore
    Love rating 251
    fenemore said

    Just why the hell is a supermarket selling broadband services? Do I go to BT to buy my baked beans?

    Can't stop, I am on my way down to my hairdressers to buy a three piece suite...!

    Report on 13 February 2012  |  Love thisLove  0 loves
  • MikeySkiBoy
    Love rating 1
    MikeySkiBoy said

    Dunno what gk141054 is complianing about. I think O2 is really pretty good. My up to 20Mb link is always sitting at over 15Mb and they have been as reliable as any other provider I have ever had (BT, talktalk, Plusnet, Metronet & AOL). If you are on the end of a dodgy, or long piece of cable, or you have some suspect cabling or equipment in your house, that's not really O2's fault and you will probably have identical problems with any other supplier, assuming your line from the exchange is as good as it can be.

    If I can use a water based analogy that deals with this - Imagine you have a paddling pool (your computer) that you want to fill up and your hose (your phone line) will stretch, but the further away the pool is, the narrower the hose gets as it stretches. Changing the tap (your provider) will not help you to fill your paddling pool if your hose is fully streched, has a kink in it, or if the sprinkler is partially blocked; or a blend of any/all of these situations. You need to unkink the hose, clear the blockage or move the pool closer to the tap, to allow the hose to open up a bit.

    Until technology catches up and allows the hose to stretch further without narrowing, we are stuck with making things as easy as possible for our broadband to run at the best speed it can.

    Sorry if this sounds smug, but there are technical limitations that we need to be aware of. Suppliers are probably guilty of not making this quite as clear as they could.

    Report on 13 February 2012  |  Love thisLove  0 loves
  • oliverw
    Love rating 8
    oliverw said

    I think it is rather unlikely that Plusnet offers speeds up to 20 Mb (megabits per second) and Sky offers speeds up to 20 MB (megabytes per second), remembering that one byte is eight bits. Oh, you didn't know that "b" is the symbol for "bit" and "B" is the symbol for "byte"? Well, now you do.

    Also, while I'm at it, note that, if correctly used, "M" is the symbol for "mega" (million) and "m" is the symbol for "milli" (thousandth, e.g. a millimetre is a thousandth of a metre). So, if you see any speeds quoted as, for example, 20 mb, you'll know that they wrote "twenty millibits" (per second) although obviously intending to indicate 20 Mb/s.

    Oliver

    Report on 13 February 2012  |  Love thisLove  1 love
  • muffindell66
    Love rating 4
    muffindell66 said

    Rubbish, rubbish, rubbish! Cheap yes, but and this is a big BUT, none of the providers actually provide unlimited downloads, it's all in the small print - or not as the case may be! I was with Sky unlimited, I was told to leave because I continued to overstep their fair useage policy. O2 did the same, although service was really good, fair usage policy.

    I'm with BT now and even their unlimited is 300Gb per month, after 100Gb they start throttling back. However I have never noticed any throttling TBH. BT service is excellent, day in day out, just what a customer needs.

    Tesco, well it's Tesco, the Ryan Air of supermarkets, by the time you've loaded all the extras, looked at the crappy service, it really isn't worth the hassle.

    Report on 13 February 2012  |  Love thisLove  0 loves
  • gonfishin
    Love rating 12
    gonfishin said

    - RELIABILITY,

    - REAL HELP when you need it from someone who understands the technology

    - speaks ENGLISH -

    - AVAILABLE without hanging on the phone in an endless queue

    are the REAL factors that should drive choice.

    When it doesn't work and/or they can't fix it quickly, .PRICE and SPEED are for most of us about as irrelevant as MikeySkiBoy's paddling pool in the middle of winter

    Having sacked Talk Talk (UGH!) and Virgin (It'll take two weeks for an engineer to come and maybe fix it), I have nothing but praise for O2. Over three years, with O2 broadband at home and in the office, the system has never failed. I get decent speeds, much better Upload speeds than anyone elsee I know AND, if I ever have need to phone them, there's very seldom any significant delay and the person on the other end knows what they're talking about and can speak English!.

    Anyone who chooses just on price (which is all you get from comparison sites) deserves all they get. It may work when you get it, but wait 'til you get a problem!

    If you're thinking about getting it or changing provider, there's a good article here, which also mentions the dangers of taking a phone line too... It's a bit dated, but worth a read.

    http://watford.theflea.co.uk/magazine/210/fleabytes_broadband

    Report on 13 February 2012  |  Love thisLove  0 loves
  • mbhknight
    Love rating 3
    mbhknight said

    Can I as a pensioner mention that not all of us are obsessed by broadband speed. I use the internet daily but being on a pension need to keep the cost to a minimum. I got rid of BT because their service was so poor, I got rid of Virgin because they just kept increasing their costs and I am now on TalkTalk because I get both internet and all calls for £28 per month. The speed is irritating and as I am moving shortly I will try someone else but I doubt that it will be OT with whom I have my mobile, so I'll probably try Tesco's all in package. It's not the speed that is important but that I get the same speed all the time. I am an early bird so I get wonderful speed when I'm up normally between 4 to 7 o'clock each morning but of course during the day the speed drops and what would be important would be my ISP providing me with some indication that the connection is actually happening and will get to me eventually.

    Report on 14 February 2012  |  Love thisLove  0 loves
  • Laprivan
    Love rating 0
    Laprivan said

    Whenever I see an "unlimited" deal I start wondering what their "unlimit" is. They all have one but it's usually hidden away under the guise of an acceptable use policy.

    Report on 14 February 2012  |  Love thisLove  0 loves
  • Basia02a
    Love rating 49
    Basia02a said

    A bit confused as how Tesco's £16.25 is head and shoulders above the others when Plusnet is only £16.23?

    Report on 15 February 2012  |  Love thisLove  0 loves
  • goodmove
    Love rating 0
    goodmove said

    Does anyone know if Tesco is using the O2 network for their broadband offer? Just curious, as they already use O2 for their Tesco Mobiles.

    Report on 16 February 2012  |  Love thisLove  0 loves
  • davidinnotts
    Love rating 2
    davidinnotts said

    Good article, John, but you've made the mistake that even Which? did until recently - you've forgotten that Plusnet have a MUCH cheaper deal if you're in certain areas. Those areas cover about 80% of users and you can do a quick check to see if it's you. This would make Plusnet FAR cheaper than the others if you qualify.

    I've been with Plusnet now for well over a decade. I check every year to see who might give me a better deal, and have never found one. On top of that, Plusnet is pretty reliable and unique in keeping customers fully in touch when things go wrong, as they did recently during an upgrade (the first problem I've had in four years, and the slow-down only lasted one day). This happens to all ISPs, but most simply don't tell you or blame it on BT Wholesale, who run the national pipes. Plusnet's customer care is so good that I don't want to leave them.

    Oh, and the super-cheap deal doesn't require a phone-line move if you want to keep your phone supplier, as we do. You actually have a choice!

    Report on 16 February 2012  |  Love thisLove  0 loves
  • MrsTrellisOfNorthWales
    Love rating 18
    MrsTrellisOfNorthWales said

    Plusnet do have a totally unlimited deal, but as far as I know it's only available to their existing customers. I only found out about it when I tried to leave Plusnet after several months of going over my allocated quota - it was then that they offered me the totally unlimited package, which costs about £20 per month.

    And (for those who regard this as important), one of Plusnet's biggest draws is that their call centres are UK-based!

    Report on 16 February 2012  |  Love thisLove  0 loves
  • Sir!
    Love rating 0
    Sir! said

    I'm about to change my home phone and broadband supplier. This deal looked quite attractive and I qualify on the Tesco Clubcard front. I put my phone number and postcode into their broadband checking system and what do you know? It came up as "computer says no". So I phoned a real live Tesco person and he confirmed that they cannot switch everybody. It seems that it depends who you are currently with (in my case TalkTalk) as well as other technical factors. Nobody else that I've contacted (so far) has any issues with providing service from my local exchange. So come on Tesco, what's the problem?

    Report on 23 February 2012  |  Love thisLove  0 loves
  • lwaugh152
    Love rating 1
    lwaugh152 said

    Are there any more recent comments on Tesco's offer? Life has delayed me making any change myself, so very interested to know if anyone has something to add.

    Report on 09 April 2012  |  Love thisLove  0 loves

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