• silicon.com
• Technology
• Networks

By Tony Hallett, 1 March 2004 14:40

NEWS Telewest Broadband will in the spring launch a 256Kbps always-on home internet package, as a cheaper option to its 512Kbps, 1Mbps and 2Mbps services.

It will cost £17.99 per month and is almost certainly in reaction to Tiscali's popular £15.99 per month 150Kbps offering, although that divides up a wholesale ADSL product rather than use cable.

Telewest said the 256Kbps service is about providing choice and still recommends its other options for people more likely to use bandwidth-intensive applications.

Chad Raube, Telewest Broadband director of internet services, said in a statement: "We're expecting demand from people who have previously considered broadband a big leap from dial-up and now getting onto the first rung of the broadband ladder will become a no-brainer."

Despite the likelihood there will be a market for an always-on, cheaper alternative to current services from ISPs that use copper lines and cable companies, it is questionable how many end users will agree with Telewest that the offering is indeed broadband.

A recent poll of silicon.com readers found just under 10 per cent consider 150Kbps - Tiscali's entry-level always-on speed - broadband. Indeed, a cumulative total of almost 35 per cent say that broadband is over 1Mbps, rather than the UK's generally accepted rate of 512Kbps.

In related news, BT today announced a sub-£20 per month broadband product. It does have a monthly cap of 1GB of downloaded data but is still offered at a rate of 512Kbps.