BT has launched a "superfast" 40Mbps optical fibre broadband service for £20 a month, £8 cheaper than a similar service from rival Virgin Media.
But BT claims its Infinity broadband service is able to upload materials such as videos six times faster than cable television operator Virgin Media, the only other supplier of high-speed internet access.
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Online gaming and iTunes downloads will also be quicker, and households with multiple computers will be able to make simultaneous use of services like HD catch-up TV and social networking.
Infinity is aimed at improving the UK's international broadband rankings at a price that will ensure mass adoption, said BT.
BT is investing £1.5bn in a new fibre network to deliver the service, which is said to be five times faster than most current levels in the UK and 10 times faster than the industry average.
The fibre network will run past 40% of UK homes and businesses by mid-2012, mainly in towns and cities, but BT is willing to consider extending this to 90% with public funding, according to the
The government has proposed a 50p per month tax on telephone lines to finance superfast broadband infrastructure in rural areas, but the Conservative party has opposed the levy.