Pipex is planning is to offer 8Mbps broadband for just £6.50 when customers take its £12.50 per month package for unlimited voice calls.

Whether this deal is for exchanges Pipex has unbundled, or will apply across all exchanges hasn't been released, but more news should be available as they plan a £3m advertising campain, with David Hasselhoff as it's front man.

The subsidising of broadband with packaged phone deals seem to be the way that the industry is moving with recent similar deals mobile companies such as Orange and O2, and broadcasters, including BSkyB. The Pipex deal is £2 per month cheaper than that offered by Carphone Warehouse.

The problem is that these deals will cost the company in the initial stages,  city analysts believe BSkyB's broadband will cost the company £100m in the first year, and this is underlined by Rupert Murdock telling shareholders that the launch will have a "significant" impact on profits.