BT has given a strong hint that it will slash the wholesale price of broadband within weeks.
The move would allow internet service providers (ISPs) to cut costs to consumers, and could help BT reach its target of signing one million broadband users by the summer.
According to a report in The Times, BT chief executive Ben Verwaayen is preparing a significant broadband-related move, likely to be a cut in the £14.75 per month it charges ISPs.
"We are looking at everything, including pricing, to see how we can speed up the adoption of broadband," he said.
Verwaayen's comment mirrors messages coming from Bruce Stanford, BT's director of wholesale products, who has also indicated that the telco's pricing strategy is "under review".
BT Wholesale told vnunet.com that a statement could be made as early as next week.
If the wholesale price is cut, it would allow ISPs dependent on BT's ADSL technology to bring down costs and pass the benefits on to consumers.
Jupiter analyst Mark Mulligan said: "It would certainly stimulate demand and allow ISPs to target a wider audience which they will need to do to maintain a growing customer base.
"Up until now broadband has only been really attractive to more technical consumers, but cutting prices so that the price difference between dial-up access and broadband is not so great would help generate new interest.
"We can see this in Spain and Italy where the price of broadband is much cheaper."
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