AOL is doubling broadband speeds for its Silver, Gold and Platinum customers at no extra cost, raising speeds to 512Kbps, 1Mbps and 2Mbps respectively, with no time or usage limits.

At the same time Dixons Group will start selling an AOL wireless home broadband package from its 1,100 stores across the country.

"We are now seeing broadband usage outstripping dial-up and, with the addition of 2Mbps services, consumers will be able to take full advantage of new content and services, such as video on demand, which will become available over the next year," said Karen Thomson, chief executive at AOL UK.

"The success of our partnership with Dixons Group has strongly benefited our dial-up business in the past 12 months, and we are confident that our broadband services will perform just as well in-store."

The wireless package includes a Netgear wireless hub and router, and software designed to make it easier to set up a home network. Firewall, antivirus and anti-spam software from McAfee are also bundled with the offering.