UK Online drops broadband price below £10
13 April 2005
Internet service provider UK Online has unveiled a new service for £9.99.
The four million homes that can access UK Online's service can now receive high-speed internet access for the lowest price yet.
At 512 kilobits per second, the new service is at the slower end of the broadband scale, but it is half the price of BT's cheapest broadband offering.
Broadband providers have rapidly been cutting prices in recent months and UK Online is also reducing the cost of its 8Mb (megabit per second) service to £29.99. UK Online was the first UK service provider to launch an 8Mb service.
Both new cut-price services are possible because of local loop unbundling, by which operators can put their own equipment in BT's telephone exchanges. Experts have raised concerns that the new system could lead ISPs to cherry-pick profitable areas, such as towns and cities, leaving rural places with a poorer service and more expensive broadband.
Chris Stening, general manager of UK Online said: "Local loop unbundling has meant that we could offer the fastest broadband in November and now we can offer the cheapest."
The company is considering extending its network, which is spread across urban areas in the UK such as London, Birmingham and Glasgow. UK Online has a pre-registration scheme for broadband and is also looking at launching new services, such as IP television.
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