Carphone Warehouse has launched a package of phone and internet services that will kick off a price war with its major competitors.
The company will charge £11 line rental, plus a monthly fee of £9.99, for a service that includes unlimited local and national landline calls, unlimited international landline calls to 28 countries and up to 8Mbps broadband access.
The move follows yesterday's rumours within the telecoms industry that the company would offer a free broadband internet service to users, and Carphone Warehouse is billing the offering as "free broadband".
This will put Carphone Warehouse at a serious price advantage over its competitors, which generally charge £10 a month line rental and £14.99 for internet access.
"The residential telecoms market in the UK will never be the same again. From today, broadband is a right, not a privilege," said Charles Dunstone, chief executive at Carphone Warehouse.
The company also stated that the services will run 24 hours a day instead of being restricted to use at certain times.
"Our approach to business has always been about how little we can afford to charge our customers, rather than how much we can get away with," said Dunstone.
"So today we are cutting more than 60 per cent off the cost of the average UK residential telephony and broadband bill, and providing unlimited calls to 28 international destinations."
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