Freeserve sets £30 broadband price

Following BT's wholesale price cuts, Freeserve has set a price point £7 higher than rival internet service providers (ISPs) because of concerns over BT's network performance and its ability to fulfil customer orders.

John Pluthero, chief executive at Freeserve, said in a statement: "Following further confirmation received from BT on their ADSL price reduction, Freeserve will offer broadband internet access for £29.99 a month [including VAT] to its existing customer base from 1 April.

"Freeserve was first to launch a pay-as-you-go model for the mass market. We were ahead of BT then; we beat them to the launch of ADSL in September 2000; and now we will be number one for consumers of broadband.

"Between now and April, there is still a lot of work for BT to do to upgrade both network capacity and its back-office provisioning before the product can be offered to a mass market.

"This is why our existing customers will be offered the £29.99 product first. All new and existing Freeserve broadband customers will automatically get the new lower price of just £29.99 per month from 1 April 2002."

Rival ISPs Pipex and Freedom2Surf have set prices under £20, excluding VAT, but neither has the mass market track record of Freeserve.

Of the other big three ISPs, BTopenworld says it will unveil details of a self-installed product "shortly", thought to mean before the end of next week.

AOL is still trying to iron out back-office support details before committing to a price of between £20 and £30.