Price war heats up over 1Mbps broadband

Broadband provider Bulldog Communications has reacted to BT's decision to launch a wholesale 1Mbps ADSL product by cutting the prices of several of its own high-speed packages.

Anyone signing up for a year-long subscription to Bulldog's 1Mbps AllTime 1000 product during September will pay £29.36 including VAT per month (£24.99 ex VAT) -- a reduction of around £5 per month.

As Bulldog points out, this means customers can get a 1Mbps connection for little more than other ISPs charge for a 512Kbps service.

BT is launching its wholesale 1Mbps ADSL product, called IPStream 1000, in a large trial this autumn. Many service providers are taking part in this trial, and it looks likely that some ISPs will sell the product to customers for as little as £30 per month -- although others claim such prices are not sustainable.

Bulldog offers 1Mbps and 2Mbps services from 450 local exchanges in the UK -- in the South East, Greater London and several other cities. It also sells 4Mbps and 6Mbps services just in London.

Signing up for any of these products will also be cheaper in September, as new customers can choose between getting a free ADSL modem or just paying half of the usual connection charge.

Seymour Forsyth, communications manager at Bulldog, told ZDNet UK that these offers were an attempt to remain competitive in the area of faster broadband.

"We already have an established market for 1Mb, 2Mb and higher residential grade services, and our announcement this week should attract both new and existing broadband customers alike," said Forsyth.

Forsyth added that Bulldog was aiming to increase the number of local exchanges from which it offers services.