BT chief confirms ADSL price cuts

BT chief Ben Verwaayen has promised to cut ADSL prices significantly, but is not yet ready to say by how much.

Users will have to wait at least two or three weeks to learn of BT's plans. But prices are expected to fall to around £30 a month at the end of February.

Verwaayen told reporters at the press conference: "We will substantially reduce the cost of wholesale internet services and this will allow our wholesale customers to reduce the price of their services significantly.

"We will also improve the quality of our customers' experience and substantially invest in improving our marketing."

Earlier reports suggested that ADSL price cuts by BT could bring it into further conflict with telecoms regulator Oftel.

When asked about this at the conference Verwaayen replied: "The regulator has a job to do and I have mine to do. But I agree with the regulator that the internal BT subsidy [of wholesale prices] is not a good idea."

Yesterday internet service providers (ISPs) AOL and Freeserve told vnunet.com that they wanted to see the wholesale price of ADSL drop low enough to allow them to price their services at under £30 a month.

Paul Barker, head of corporate affairs at Freeserve, said that it would be looking to provide a service for either £24.99 or £29.99 a month.

vnunet.com believes that both ISPs will announce plans for cut price services in tandem with the BT price reductions at the end of the month.

The moves are being made to allow resellers of BT-supplied broadband services to match the prices of high speed internet access being offered by cable operators NTL and Telewest via cable modems.