From 1 April wholesale line rental for consumer connections will be reduced from £25 to £14.75 a month.
Making the announcement, BT's chief executive Ben Verwaayen said: "Broadband is the future for Britain and we're putting it at the heart of BT's plans for growth in the UK mass market. This will drive the whole market forward by making broadband affordable, attractive and accessible."
Verwaayen said BT's had a target of one million asymmetric digital subscriber line (ADSL) broadband connections over BT's network by next summer. There are currently 145,000 users signed up by BT's 200 wholesale customers, up from 40,000 a year ago.
In addition to price cuts Verwaayen promised better network performance and service quality to wholesale customers and end-users and a new marketing initiative including joint projects between BT Wholesale and more than 40 service providers.
BT has also pledged to seek out partners to extend broadband to less commercially viable areas. This ties in with the strategy of the government's E-envoy who has suggested aggregating public sector demand to make it commercially viable to update rural telephone exchanges to broadband standards.