Tesco UK Technically Offers FREE Unlimited Broadband with Phone Rental

Customers of supermarket giant Tesco can now technically receive a free broadband service for a year after they added a £30 Giftcard to their internet and phone bundle, which was already discounted down to just £2.50 a month for 12 months. So what’s the catch?

As usual the catch is that you still have to take their Line Rental service, which costs £13.75 per month. The discounted broadband price then lasts for 12 months before returning to £6.50 a month, although the ISPs minimum contract period is also 12 months, which means that people who make use of the new £30 Tesco Giftcard will technically be getting a free service but only so long as they leave after their contract is up.

Tescos Broadband with Inclusive Evening and Weekend Calls
* Up to 14Mbps “Typical” download speed (20Mbps theoretical)
* Unlimited downloads (FUP)
* No set up fees (£40 for 1 month contract option)
* 3 Clubcard point for every £1 you spend
* UK call centre
* Inclusive wireless router
* Inclusive UK landline calls evening & weekends

PRICE: £2.50 + £13.75 Line Rental (Total: £16.25)

Tescos Broadband with Inclusive Anytime Calls
* Up to 14Mbps “Typical” download speed (20Mbps theoretical)
* Unlimited downloads (FUP)
* No set up fees (£40 for 1 month contract option)
* 3 Clubcard point for every £1 you spend
* UK call centre
* Inclusive wireless router
* Inclusive UK landline calls anytime

PRICE: £2.50 + £4.50 Anytime Calls + £13.75 Line Rental (Total: £20.75)

It’s understood that to get the £30 Tesco Giftcard you must quote offer code GIFTCARD-A during the sign-up process. A special Internet Security service is also available for £2 extra per month if you want it.

It’s hard to see how they make much of a profit at this price point. We suspect that customer retention for their major high street stores is more the focus of this deal.