Pipex and Freedom2Surf have thrown down the gauntlet to other internet service providers (ISPs) by setting ADSL retail prices of £19.95 and £19.15 (excluding VAT) respectively from 1 April.

The move follows BT's ADSL wholesale price cuts to £14.75 per month, announced earlier today (26 February).

Costing £23.44 including VAT, the new Pipex service will apply to existing and new customers. The firm is also offering to pay the £58.75 BT line conversion costs of its first 40,000 customers.

At £22.50 including VAT, almost £1 cheaper per month than Pipex's price, Freedom2Surf's offering also includes a £59.99 set-up fee for its residential service.

Chris Panayis, managing director at Freedom2Surf, said: "The popularity of self-install ADSL clearly indicates that there is real latent demand for broadband access from both consumers and businesses in the UK, but only at a realistically affordable price.

"At just £22.50 a month ISPs can now firmly compete with the cable companies and give more customers a real choice when it comes to choosing a broadband provider."

Among the three largest ISPs, BTopenworld says it will unveil details of a self-installed product "shortly", which is believed to mean before the end of next week.

Freeserve has set a price of £29.99 including VAT. AOL UK, meanwhile, hopes to reveal its offering within a couple of weeks at a price of between £20 and £30.

AOL is waiting to iron out back-office support details before committing to a major push behind ADSL broadband services.

"But if the details behind the headlines work out, then 2002 will be the year for a major marketing effort from AOL," Matt Peacock, communications director at AOL UK, told vnunet.com.

BT chief executive Ben Verveyaan told reporters earlier: "It's important that ISPs recognise this opportunity. Today is a very good day for Broadband Britain."

The telco's cuts have been made to allow ISPs to bring ADSL broadband prices in line with, or as it stands now lower than, rival cable broadband technology.

Both NTL and Telewest offer cable modem broadband access for around £25 per month.