Freeserve has responded to the recent launch of unmetered internet services by rivals, including AltaVista and LineOne among others, with its own package.
It is offering customers who access through BT lines unmetered access at off-peak times for £6.99 per month from May. It will also offer an extension to its current free minutes offer with unmetered access at all times provided a minimum of £10 is spent on voice calls each month.
Freeserve is the UK's largest ISP and was the first to offer subscription-free internet access. However, users still had to pay for telephone calls.
John Pluthero, chief executive of Freeserve, said: "Freeserve built its reputation with customers on low-cost Internet access combined with high quality service. We will continue to set the standard for both."