A broadband pricing war could be on the cards, following the expected plan by Carphone Warehouse to offer a free broadband service to customers who sign up for its Talk Talk voice landline service.
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As most broadband services require the use of a separate landline to work, Carphone Warehouse believes it can take broadband sales away from the likes of BT, Wanadoo, AOL and NTL by offering a free service.
Instead of making broadband cheaper, BT is instead now concentrating on making its broadband services faster.
The cheapest BT broadband service currently on offer is £17.99, plus the quarterly charge of a BT Together landline or other phone service.
BT is now starting to increase its basic broadband speeds from 2mbps to 8mbps, subject to line quality, and will require upgraders to sign a new 12-month broadband contract to help tie them in.
Carphone Warehouse hasn’t so far said what type of free broadband service it will be providing, and has simply confirmed it will be expanding its broadband offering this year.
It is believed an announcement could be made by the mobile phone retailer later this week.