Redten Internet is upping the stakes in the broadband race by offering a free PC for people who sign up for 3 years of its service.

For a monthly charge of £20 a month, Redten is offering an 8MB broadband connection and promises to upgrade to the 24MB line when the BT exchanges are altered. The PC that they throw in for the 3 year commitment is an LG model worth about £500, and includes a 17-inch monitor (19-inch for the first 10,000 who sign up), 160GB hard disk, 512MB of RAM, and Windows XP Media Center Edition, plus a free upgrade voucher for Vista.

According to website PC Pro, Redten is not the first to offer a free computer with internet connections – it was done in the late-90s, but forced customers to sit through on-screen advertising in exchange for the free machines, which many customers sold.

PC Pro quotes Redten marketing manager Nick Mounfield hinting that there's no such thing as a free PC: “There will be a web portal which will have revenue streams – we'll be selling advertising space on the portal, and also emailing offers to people from selected companies and partners”.

Via PC Pro