Wanadoo have have cut the cost of their 1 megabit Broadband service to UK£17.99 (€26.76). This compares rather favourably with the 512k service from BT that costs around UK£29.99 (€44.61).
This new phase in the broadband price war is sure to provoke a rapid response form BT, who will most likely double bandwidth and cut subscription costs – though they will find it hard to match Wanadoo’s offering.
However, the service is capped at 2 gigabytes per month – a move that ISPs are resorting to more commonly. Wanadoo will provide wireless kit for home use for an additional UK£79 (€117).
Pricing like this is a brave move from Wanadoo, as they are currently appealing against a €10.3 million fine (UK£6.9) levied on them last year for predatory pricing.
Price cuts and competition between BT, Wanadoo, NTL and Bulldog have brought Britain forward to one of the fastest growing broadband markets in Europe.