BT Broadband has cut the prices of its home phone and broadband deals, in a sign that competition for customers could be about to heat up among UK internet service providers.

The new offers, dubbed Talk & Surf, Talk & Surf Plus and Talk & Surf Unlimited, start at less than £8 per month and offer monthly call minutes, a fast broadband connection of up to 20Mb and free customer support.

BT’s new entry level dual play broadband offering, Talk & Surf is priced at £7.49 per month for the initial three months of the contract term and £14.49 thereafter. Subscribers will benefit from 10GB of usage per month, basic security and unlimited UK weekend calls.

Talk & Surf Plus, meanwhile, features an introductory charge of £9.99 for three months, before reverting to £19.99 thereafter. This represents a massive discount from the Home & Away broadband bundle it replaces, which featured price points of £18.99 for the first three months and £24.99 for the rest of the contract period.

Key features of Talk & Surf Unlimited include unlimited UK landline calls at any time and a monthly usage limit of 10GB.

Finally, Talk & Surf Unlimited, which replaces the high-end Unlimited package, is priced £18.99 for the first three months and £27.99 thereafter. Takers benefit from unlimited downloads, advanced security to keep them safe online and unlimited UK landline calls at any time.

All three bundles feature a contract term of 18 months. A connection fee of £50 is levied for new customers and landline rental is charged at £11.54 per month. For an additional charge, BT also allows subscribers to add mobile broadband to their packages.

BT’s price reductions come hard on the heels of a series of moves to sweeten the appeal of its product range. Earlier this year, the broadband supplier announced the launch of new fibre optic broadband products dubbed Infinity, which provide users with super-fast download speeds of up to 40Mb.

Research conducted by Top 10 Broadband found that in selected areas where Infinity available average broadband speeds could be boosted by as much as 8 and a half times. In the slowest locations, the impact of Infinity is even more marked and could increase the mean connection speeds by up to 20 times.