Wanadoo sparks broadband price war
26 August 2004
ISP Wanadoo has launched a new cut-price high-speed product, sparking an industry price war.
The group's super-fast package offers 1Mb connections at £17.99 a month and undercuts most rival internet service providers (ISPs) by around 40 per cent. BT's 1Mb service costs £29.99 a month.
Wanadoo, part of France Telecom, had been offering broadband subscriptions just under £20 a month and at one megabit per second, the company is now offering broadband that's twice as fast as the regular 512 kilobits per second offering.
Wanadoo chief executive Eric Abensur said: "We believe 1Mb is a basic right for all internet users. That way everyone can enjoy the benefits of faster browsing and downloading, higher quality sound and video, and the enhanced online experience that 1Mb broadband provides."
The Wanadoo offer, which is available as from August 25th, limits the amount of data users can download.
PlusNet has now responded to Wanadoo's price cut by offering 1Mb connections at £14.99 a month, and 2Mb connections at £19.99 a month.
"If Wanadoo truly meant business, this is the kind of pricing they would be putting in place," said Marco Potesta, marketing director at PlusNet.
Experts suggest that the aggressive price war breaking out in Britain could lead to internet access being offered in the future with no monthly subscription at all. Small ISP Freedom2Surf already offers a 1Mb capped connection for around £15 a month.
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