O2 has taken the wraps off a combined broadband package which offers a 3G mobile dongle, a home landline connection offering speeds up to 8Mbps and a Wi-Fi router for £20 per month.

Customers happy to be tied into an 18-month contract get the 3G USB dongle for free, although commitment-phobic users will have to pay £99 for the mobile broadband device.

The package offers a 3GB monthly data allowance and "unlimited" Wi-Fi via The Cloud, subject to the usual fair-use policy.

The deal is a considerable improvement on the company's previous package which cost £20 per month for the mobile broadband connection alone.

O2 also announced the Home Broadband Takeaway box, available through retail outlets, including a router, filters and Ethernet cable.

Customers are refunded the £30 price tag from their monthly payments once the connection is up and running.

"Customers told us that they wanted the flexibility to set up broadband in their own time," said O2 marketing director Sally Cowdry.

"O2 Home Broadband Takeaway enables this, so they can take a tangible product home and benefit from an unparalleled buying experience for broadband in store. "

The joint offer will be available between 1 August and 31 October to the estimated 60 per cent of the UK population living within the O2 Home Broadband network.