Mobile network offers budget broadband amidst service price war

O2-owned discount mobile network, Giffgaff, aims to rollout low-priced full fibre broadband connections to undercut its competitors.

The telecoms firm plans to pay its current customers £100 to enrol in trials for an internet service, offering speeds of 500mbps for only £10 per month. This price is far below the cheapest deals, with BT coming in around £30 – and around half the price charged by its alternative network rivals.

Chief executive for Giffgaff, Ash Schofield, commented:

“Broadband is a natural evolution for us as a connectivity brand. We know people are frustrated with their current broadband offering, so we’re committed to bringing together the best tech.”

The recent move highlights how the soon-to-complete £15 billion merger of Vodafone and Three has sparked a price war throughout the UK’s telecommunications market.

The major players are set to join forces to become the largest mobile network in the nation, with approximately 27 million customers. The agreement has now been cleared by regulators at Ofcom, despite concerns raised that decreasing the number of major operators to three from four risked driving up prices for telecoms consumers.

However, the formation of major competition for BT has instead prompted industry operators to attempt to remain competitive. Recent headlines have been awash with telecoms companies racing to release value products in both the broadband and mobile markets to keep customers. For instance, BT is reportedly considering launching a new discounted mobile service and increasing its investment in Plusnet, the value broadband brand.