Both companies from today are offering a £17.99 per month 2Mbps service. But BT denied that the move was part of a competitive battle, maintaining that speed was not the only metric for consumers.
"The future 'battleground' in broadband will be in differentiating services rather than price and speed as it is today and, with this upgrade, BT will concentrate on addressing these new challenges," said Gavin Patterson, group managing director at BT Consumer.
"Customers are demanding more from their broadband through the explosion of new content and applications. High speed broadband is key to meeting that demand and delivering these new services to a mass market."
In February BT upped the download speed for its retail customers in the same way. Similar price wars have seen broadband take-up increase to more than half of all internet connections, according to the latest figures from the Office of National Statistics.
Eric Abensur, Wanadoo UK's chief executive, said: "We are known for offering customers great value for money, and providing the best services at the best possible price.
"With this new offer we want to demonstrate our continuing commitment to giving our customers more for their money by offering our fastest speeds as standard."
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