Tiscali offers cheaper broadband

Tiscali has launched a 150kbps broadband service for £15.99 a month, which includes a free modem and a £25 set-up fee.

The ISP claims the new product “gets rid of the price gap between narrowband and broadband”, while providing the added bonus of an always-on connection and an extra phone line.

Steve Horley, ISP director at Tiscali, told Web User: “We think broadband is still too expensive and while some ISPs are looking to offer packages that go up in spec [2Mb], they are missing a latent demand for slower speeds and cheaper prices.”

According to Tiscali, the service, which offers speeds of up to three times faster than a 56kbps modem, would suit web users that want always-on surfing, faster browsing, faster music downloads and to open email attachments instantly, while keeping the phone line free.

However, rivals say the 150kbps package is not a "broadband" service and does not offer the same benefits as a 512kbps service.

An AOL spokesman said: “We offer a 512kbps service - genuine broadband, with no install or modem fees. A 150kbps service has the benefit of being always on, but will ultimately disappoint anyone looking for truly high-speed internet access and who wants to make the most of the good content such as music services, film clips, TV highlights and sport content.”

Tiscali also offers a 256kbps service at £19.99 a month with a £50 set-up and free modem and a 512kbps product at £26.99 a month, with a free set-up and free modem.