TalkTalk vs Tesco: Budget home broadband price war hots up

While we would say this, it's never been a better time to be looking for a cheap home broadband deal.

Tesco broadband, which is backed by global telecoms giant Cable & Wireless, has reduced its prices to a new low - but TalkTalk has been quick to respond.

The latest Tesco offer allows customers to sign up for a one-year contract at just £2.50 per month, as long as long as they have Tesco Clubcard - £4 cheaper than the usual £6.50 per month for its broadband plus evening and weekend calls deal.

However, TalkTalk has been quick to counter by pointing out that, in real terms, it still has the cheapest deal on the market with its TalkTalk Essentials package. While the TalkTalk deal will set you back £3.25 per month for the broadband (75p more than Tesco), you can get your telephone line rental (essential for any home broadband package) for just £9.50 per month as long as you pay it a year up front.

As Tesco’s line rental is £13.75 per month, this adds up to an actual total monthly bill of £16.25, compared to just £12.75 per month for the TalkTalk deal.

A TalkTalk spokesperson claimed: "TalkTalk remains Britain's best value home phone and broadband provider. Customers taking Essentials from TalkTalk along with our Value Line Rental save £42 a year compared with Tesco's 'evening and weekend' package."

Of course, for most of us it’s not just about price. For example, you’ll be restricted to just 40GB of downloads per month with this particular TalkTalk package, compared to a much more generous 100GB from Tesco. And while TalkTalk can boast about its parental controls via its HomeSafe utility, it doesn’t have a sparkling record in terms of customer service.

But whatever you think of the companies involved, one thing’s for certain: drops in home broadband prices mean its a boom time for consumers – and yet another reminder to check your bills to make sure you’re paying a competitive price for your home entertainment package.