Britain’s broadband price war has hit new levels after The Carphone Warehouse introduced a new all-inclusive package costing just £5.89 per month.

With the £10.50 BT line rental, the new Talk2 International deal offers home users ‘up to’ 8Mbps broadband, unlimited evening and weekend calls in the UK and free international landline calls to 36 countries.

Carphone Warehouse said Talk2 is ideal for those who don’t use their phone much during the day but want a landline to make calls when they’re at home in the evenings and at weekends.

“Many customers tell us they don’t use their home phone during the day so we’ve come up with something for people who make landline calls when they get home from work and at the weekends,” said David Thatcher, managing director of TalkTalk.

“We’re committed to providing the best value around; we pioneered free broadband and on landline our position remains clear - if you want to pay less join TalkTalk.”