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O2 has launched a new broadband deal offering two months' free internet and home phone services to UK households.

Consumers signing up for O2's The All Rounder and The Works broadband packages can avoid paying anything for their web services until the third month of their contract.

Broadband deal subscribers can make significant savings on their initial bills – money which can be put to better use over the festive period.

O2 describes The All Rounder broadband package as being "great for smaller households".

The broadband deal, which comes on a 12-month contract, offers up to 20Mb download speeds, an unlimited usage allowance and free 24/7 customer services support.

Prices start from £17.50 per month, although customers who have been with O2 mobile for longer than two years receive a £5 per month discount.

Larger households, where there are multiple users all downloading data from the web, may be better of signing up for The Works.

This £26 per month broadband deal, which is also cheaper for long-term O2 mobile subscribers, is targeted at larger households where users are interested in gaming, music downloads and video streaming.

Consumers are able to upload at a rate of 2.5Mb, rather than the 1.3Mb possible on The All Rounder deal.

And with O2 offering two months' free service, subscribers can save up to £52 on their new broadband contract.

Both broadband packages come with a 'Best' router featuring double strength wireless for longer range.

Another perk for existing O2 mobile subscribers is an extra month of free broadband service when they sign up with the firm's home broadband service.

O2 is scheduled to withdraw the promotion on December 23rd, meaning consumers have around three weeks to make their minds up.

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