14 April 2005
A new positive web trend is sweeping the UK as rival broadband suppliers react to each other's lowering charges resulting in an overall fall in broadband costs.
Now there has never been a better time to purchase broadband, according to many analysts, as providers offer increasingly rapid connection speeds at competitively reduced rates.
UK Online has typified this trend with its latest offering of a 512 kilobits per second service priced at under ten pounds per month.
"I expect that we will see more offers like that of UK Online and the rollout of unbundled services will mirror the initial rollout of broadband," said Ian Fogg, an analyst at market research group Jupiter Research.
"This could lead to a polarisation between urban and non-urban areas in terms of speed, price and the type of service being offered."
These price cuts are being made possible due to local loop unbundling, the process which allows other operators to put their own equipment in BT's telephone exchanges.
This provides far more freedom in the type and price of service they offer.
"Local loop unbundling has meant that we could offer the fastest broadband in November and now we can offer the cheapest," confirmed Chris Stening, general manager of UK Online.© DeHavilland Information Services plc
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