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The price war for broadband is hotting up following news that BTopenworld is to extend its free ADSL activation offer.

In March it decided to waive the £65 line activation fee for new subscribers of its Home 500 and Business 500 Plug & Go broadband products.

That promo was supposed to last until May 31 but BT's mass market ISP is now extending it until the end of August.

However, punters will still have to shell out around £85 for an ADSL modem and two filters plus cough up £29.99 a month for subscription.

Last week BTo said it would donate 800 ADSL lines to small businesses and community organisations as part of a broadband awareness campaign, another sign that it is prepared to flash the cash to attract new customers.

BTo's apparent generosity is not a one-off. Earlier this month Pipex said it would give away a free ADSL modem as well as waiving the £59 set up cost of the service.

And last week Sheffield-based PlusNet introduced a new, cheaper ADSL product for just £20.99 a month aimed at punters who use the Internet for browsing, gaming and email. ®

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BT Openworld announces broadband price cut
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