BT slashes broadband prices

BT broadband customers can enjoy 25 per cent cheaper prices from tomorrow, but will also face a monthly "fair usage allowance". The new prices and download caps apply to all BT Yahoo and BT Broadband services except for its £19.99 a month no-frills offering, BT Broadband Basic, which already has a 1GB usage limit. BT Broadband 512Kbps now costs £24.99 per month with 1Mbps costing £28.99 per month. BT Yahoo Broadband 512Kbps will now cost £26.99 per month, with 1Mbps costing £29.99. The monthly download caps stand at 15GB a month for customers on 512Kbps speeds, and 30GB for those on 1Mbps. Duncan Ingram, managing director at BT Openworld, said: "Our new pricing packages bring broadband technology within reach of even more UK consumers, helping us play our part in making Broadband Britain a reality.” BT said its download caps, which will not be strictly enforced until January 2005, were "significantly higher than the usage of the overwhelming majority of broadband customers". But according to Wanadoo, its research shows that 45 per cent of users say a 1GB usage allowance is not enough. A Wanadoo spokeswoman said: "We are quite confident that our £17.99 a month Broadband 512k package, with 2GB monthly allowance rather than 1GB, is still the best value for money product in the UK." While AOL argues that broadband services should remain uncapped. Jonathan Lambeth, head of corporate communications at AOL, said: “We think that unmetered services have always driven the UK internet market. Putting limits on usage causes concern among customers regarding possible surcharges or being restricted in usage for a supposedly always-on product." In a separate announcement, BT has set dates for its national broadband rollout, which will connect 99.6 per cent of UK households to a telephone exchange by August 2005. The timetable can be accessed at www.bt.com/broadband.