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BT slashes broadband prices

Antony Savvas
Thursday 01 July 2004 09:58

BT is slashing prices for its consumer broadband packages by up to 25%, but there are no reductions for its business broadband services.

The price reductions, available to both new and existing consumers, come into effect today (1 July). The reductions are as follows: 

  • BT Broadband (512k) - down from £27 per month to £24.99
  • BT Yahoo! Broadband 512k - down from £29.99 per month to £26.99
  • BT Yahoo! Broadband 1Mb - down from £40.99 per month to £29.99
  • BT Broadband Basic (512k), remains at £19.99 per month.

Duncan Ingram, managing director of BTOpenworld, said, "The price cuts and our announcement to extend broadband coverage to 99.6% of the UK by August 2005, shows BT's commitment to bring broadband to as wide an audience as possible."

But on the business side, BT is more sluggish. "We keep all prices under review, although there is nothing imminent at the moment," a BT spokesman said of possible business price reductions.

There is also no further movement by BT on reducing the cost of alternative suppliers who re-sell its broadband services. Telecoms watchdog Ofcom recently forced BT to reduce the monthly cost of alternative suppliers connecting customers to their re-branded services over BT’s infrastructure, but only by a pound.

The BT spokesman said no further reductions to its BT Datastream service were planned, despite the likes of Telefonica and Energis urging further reductions and claiming BT Datastream, which allows rivals to tailor connections to customer needs, being the only way Broadband Britain can be created.