BT has announced new mobile broadband packages for its home broadband customers that it claims are the UK's cheapest.

Total Broadband customers can now get up to 8MB wireless broadband at home as well as "free" 1GB monthly usage on BT's mobile broadband, that uses Vodafone's network.

Customers will get BT's new Huawei-made USB modem with a hinged design, that's capable of speeds up to 7.2Mbps, where such coverage is available. The dongle only works with Windows-based PCs, but BT says a Mac-compatible model is coming within weeks.

As well as the 3G connectivity, those opting for the service also get membership of the BT FON network of 400,000 such hotspots around the world, and Wi-Fi minutes at BT Openzone hotspots across the UK and Ireland, including in Starbucks.

The new 1GB data allowance, 18-month, BT Total Broadband options vary from £9.99 for the dongle and then £18.59 a month for the first 3 months, £24.46 thereafter to £49.99 for the dongle and £7.78 a month for the first 3 months, £15.65 thereafter.

BT is also offering the dongle as a standalone prepay option, with a one-off purchase price of £129.99 for 1GB allowance for 18 months with the option to top-up if necessary.