Pipex first to announce price reductions
Pipex have been the first ISP to tell us of a price reduction following the move from wholesale supplier, BT Ignite to do the same earlier today. This is an unexpected move as most ISPs' margins in this industry are still quite low. This change, effective immediately brings Pipex into direct competition with Freeserve, Claranet and other of the 'second-tier' of lowest cost pricing at around £43-45+vat per moth. BT Openworld is still the least expensive at £34.03+vat per month (home users) and this wholesale price cut may well allow it to retain this level without following Freeserve in the price increase. In an equally unexpected moved, existing Pipex customers will be able to take advantage of this lower price.
The biggest question is 'Will Freeserve lower prices again?' [seb]