Internet service provider PlusNet is offering a capped 512Kbps broadband connection for £14.99 per month.
Analysts suggested that, with the variety of broadband offerings now available, it is a good time to move from dial-up.
The PlusNet service will be capped at 1GB of data downloads per month, but the company will offer users an upgrade if required.
"We will allow people more capacity - up to 4GB - priced at around £2.50 per extra 1GB," said a spokesman. Final pricing will be published on 1 June.
PlusNet altered its range last week to offer 150Kbps connections at £14.99, 200Kbps at £15.99, 250Kbps at £16.99 and 512Kbps at £18.99.
The ISP hopes that customers will migrate from its 150Kbps service to the capped 512Kbps offering, which runs on a backbone where more capacity is available.
PlusNet will offer free migration for a limited period from other services and ISPs.
Ian Fogg, broadband analyst at Jupiter Research, indicated that the new packages from PlusNet, BT and Wanadoo are just the first in a wave of new services.
"All the major ISPs have launched different packages with different prices and bandwidth for consumers, so it's a good time to switch from dial-up," he told vnunet.com.
"We will see other packages bringing in cheaper broadband, including possibly dial-up broadband services with far cheaper subscription costs. It is already happening in Europe."
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