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Competition in the UK broadband market will step up a gear tomorrow when BSkyB, the satellite television company, unveils its broadband offer. Its move will pitch it head to head with Carphone Warehouse and Orange, which have both recently launched so-called "free" broadband offers.

Sky is thought likely to follow its rivals in offering free broadband to its high-spending customers as part of a bundled package including television and telecoms services. Customers who subscribe to cheaper packages may need to pay a subscription fee, but that may be priced relatively cheaply.

Carphone and Orange both let customers subscribing to their telecoms products access broadband for free. But Carphone will come under pressure this week to change the claim that it provides "free broadband forever" after the Advertising Standards Authority upheld complaints against the retailer. The ASA is tipped have ruled against Carphone, which requires customers to sign up for a £20.99 monthly line-rental and calls package, on top of paying a £29.99 connection fee.

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