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Carphone’s Free Broadband - Update
By: MarkJ - 03 April, 2006 (1:07 PM)

ADSLGuide has spotted an interesting article in The Independent newspaper, which appears to detail the rumoured "free broadband" service that Carephone Warehouse have planned:

Carphone Warehouse is to launch a major assault on the broadband market by offering a free service to customers. The deal, which is to be announced on 11 April, will see the telecoms group offer a three-month free broadband trial followed by a rate of just £4.99 a month, half the price of the current best offer available.

To access the free broadband offer, customers need to subscribe to Carphone's fixed-line service, which has a rental cost of £9.99 a month. Carphone currently charges £14.99 for its 1MB broadband service.

The group is able to make such a drastic cut in its prices thanks to the process known as local loop unbundling, which has meant that BT has been forced to allow rivals on to its exchanges. The reforms mean that operators such as Carphone can lease the copper lines that connect a customer's home to BT exchanges, giving them end-to-end coverage.

Much as predicted, Carphone's promotion isn't free at all, although it is very cheap, even if other ISP's have offered similar bundles.

Having said that, there are no details on the broadband package, leaving room for restrictive data caps and potentially few services.

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