Broadband Falls Below £10

UK Online has launched Britain's first broadband for under £10 a month. The ISP has cut the cost of its unbundled broadband service, which doesn't run through BT's network. to £9.99 for a 512k connection - that's half the price of BT's own service.

It is also running a 2Mb/s service for £19.99 a month and an 8Mb/s one at £29.99 - something BT doesn't offer. However, the services are only available on a limited number of bigger exchanges - typically those in Britain's major cities. They are offered through Local Loop Unbundling, which allows the ISP to set up its own services directly at the exchange without having to go through the BT Wholesale network.

Chris Stenning, UK Online general manager, said: "LLU enables us to offer more innovative products than our competitors. Our unique 8Mb service has led the way on speed and now we are leading the way on price." A spokesman for BT said: "It all looks good on paper but it's only available to fewer that one in five of the UK population."

View: UK Online | Announcement

View: BT Wholesale

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