AOL joins competitive Broadband Britain as the problems of Telewest and NTL worsen.
AOL has launched a broadband service in the UK with a monthly rate of £34.99 but free of any installation or activation charge. Customers will have to buy a modem, but until 15 July this will cost just £25, then rise to £85.
At £34.99 the service is significantly more expensive than rival offerings from the other major players, BT Openworld and Freeserve. BTO charges £29.99 per month, but also requires a £86 installation fee and you have to buy a modem while Freeserve also charges £29.99 per month and £150 for installation and a modem.
AOL"s price also includes unmetered dial-up access on any standard telephone line when away from home. Nice touch IMHO.
AOL"s announcement comes as industry regulator Oftel releases findings that show that consumer broadband prices in the UK are now amongst the world"s lowest. Following recent price cuts by BT, UK consumer broadband is now cheaper than in France and Germany as are some business services. Only Sweden is cheaper. Since the beginning of the year UK prices have fallen by 39 per cent. Oftel cites higher levels of competition, both in the DSL market and from cable operators Telewest and NTL, and cheaper wholesale prices as reasons for the lower prices.