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AOL UK in sub £20 broadband offer

No cap for 'Silver' service

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AOL UK has joined the scrum of ISPs offering cut-price entry-level broadband.

Its new "Silver" broadband product, unveiled today, costs £19.99 a month for a 256k service. But unlike many ISPs, AOL UK has decided not to impose any usage cap claiming that it doesn't want to dump any "hidden costs" or restrictions on its punters. The ISP - which has more than 325,000 broadband customers and is signing up around 30,000 each month - has also cut the cost of its existing services.

AOL Broadband Gold (512k) will now cost £24.99 instead of £27.99 a month and AOL Broadband Platinum (up to 1Mb), previously £34.99 a month, will now cost £29.99.

Said AOL UK chief exec, Karen Thomson: "Our new broadband portfolio offers a range of speeds to suit individual needs without any risk of surcharges or capacity limits, providing much needed clarity to the consumer in a highly confusing market."

While other ISPs have slashed the cost of broadband but imposed usage limits, it seems AOL UK is happy not compete too aggressively on price, but to keep the service unmetered instead. Its own research has found that few consumers have any idea of what the caps actually mean in terms of what they are allowed to use.

AOL UK added that it is currently working on a number of new products and services, including video-on-demand, 2Mbps broadband, extended Voice-Over-IP services and wireless broadband. Last month, the company revealed it had "plans in the pipeline" to offer an entry-level broadband product insisting that wouldn't just be "all about price but value too". ®

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