BT Retail drops price of entry level product
Perhaps this is evidence of the competition developing in the sub £20 ADSL area. BT Retail has dropped the price of its BT Broadband Basic 0.5Mbps product from £19.99 to £17.99 a month. The 1GB monthly allowance still applies, and while this is likely to be not enough for heavy Internet users, for a great many people who just use the Internet for a few hours a week it will be plenty.
For people ordering the service online, there is a free modem and activation, which makes for an attractive proposition for first time broadband users.
The competition is becoming ever more fierce, ADSL4Less.com are offering a £14.99 (inc VAT) service which is up to 0.5Mbps and has no limits, but you must pay the £58.75 activation fee. So as always it is worth considering the total cost of ownership rather than just the headline fee. An often overlooked part of the decision making process is the cost of called support, this can vary from local rate through to some providers with 50p and £1 per minute support lines. For example while one would expect ADSL4Less to be expensive for support but it is just a national rate call.
Update Monday 4th October 2004: BT has published its full press release, which is available here.