The business-to-business division of Carphone Warehouse-owned TalkTalk is launching a business broadband package for £10 per month.
The company claims this is 58% cheaper thanBT's equivalent service and it is targeting 20% of the SME market in the UK.
The 24 Mbps service, from Opal, gives business users priority over the network.
Opal Office Broadbandoperates across the group's next-generation network. The company has spent £200m on the network, which now covers more than 80% of the UK's users and supports more than1.4 million broadband customers.
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TalkTalk has shaken up the consumer market by offering free broadband packaged with its telephone service. Opal already has 100,000 business customers but expects this to increase with the new offer.
Paul Lawton, managing director of Opal, said the company had sold more than10,000 new connections since Christmas. "For the first time we think there is a small business-grade product that we can go out with at a low price," he added.
He said this wasthe first instalment of a raft of next-generation services for businesses. "This is a building block and once you get good connectivity you can do other things on top." These included video, VoIP services, as well as hosted services, he said.