Carphone Warehouse confirms free broadband deal

As we predicted yesterday [story here], Carphone Warehouse has officially launched its call and net package that includes ‘free broadband’.It’s not co

As we predicted yesterday [story here], Carphone Warehouse has officially launched its call and net package that includes ‘free broadband’.

It’s not completely free, of course – you have to sign up for its new TalkTalk service, which gives you unlimited national and international calls to 28 countries for a combined cost of £21 a month.

Broken down, this works out as £11 a month for the line rental – which you pay to them instead of BT – and £10 for the calling plan. There’s also a one-off connection fee of £30.

The 8Mbps broadband with a 40GB monthly download limit doesn’t cost a penny extra.

It’s a stonking deal that undercuts the big broadband players. The free broadband – which is also speedier than the basic 1Mbps on offer from the likes of BT, AOL and Wanadoo – could possibly save you up to 60% on your bills compared to the best existing offers.

The only requirements are that you must have a BT line to get the broadband, and that you live in the package’s 70% UK coverage – enter your postcode on the TalkTalk site to see if you’re in luck.

The deal seems to be Carphone Warehouse’s attempt to make a ‘landgrab’ on the broadband market – it’s apparently bracing itself for a £50 million loss on the business this year, with a view to making a profit by 2008.

With Sky planning to throw its fedora into the broadband ring later this year, the internet price war looks ready to get bloody. And the winners, of course, will be us and our wallets – bring on the next challenger.

Carphone's Talk Talk website