UK internet service provider Pipex has cut the cost of ADSL broadband to less than £30 a month. But analysts argue that price is not the only factor that will boost broadband take-up.
The Pipex move comes just a day after GartnerG2 said that the cost of broadband had to come down across Europe. The group also recommended better content and access to drive consumer demand, but said that the price reduction is a good first step.
"Awareness in the UK is good; around 50 per cent of consumers are aware of broadband," said Adam Daum of GartnerG2. "Dropping prices is a way of improving take-up, but more content must be offered."
The analyst recommends around £18 a month as a reasonable charge for broadband services.
There are currently just 200,000 broadband users in the UK, compared with half a million in France and twice that in Germany.
BT is rumoured to be cutting its broadband charges on Thursday.
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