Tesco has unveiled a broadband service that costs just £2.50 per month.

The Tesco Broadband package, which must be taken with line rental that costs £13.75 per month, applies for 12 months. This means the cost per month is £16.25. After the contract expires, web users will revert to a 30 day rolling contract or a new 12 month contract but the price of the broadband rises to £6.50 per month, making the total cost £20.25.

Tesco says the broadband service offers speeds of 'up to 20Mbps and inclusive evening and weekend calls to landlines. Users will also get a free wireless router and unlimited downloads, although they're subject to a fair usage policy that's capped at 100GB per month. Furthermore, Tesco Clubcard holders will also get 3 points per £1 they spend on their bill each month.

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"With so many broadband offers and deals out there, it can feel like it's all just too complicated finding the one that's right for you," said Tesco.

"That's why we offer simple packages which are great for emailing, downloading music and movies, online shopping, sharing photos among many other things. Plus you have the convenience of having your broadband and calls on one simple bill with no need to pay BT anything."