UK Online - EasyNet's ISP - is cutting the cost of its unbundled broadband service. The ISP says it's not a gimmick, a loss-leader or a short-term time limited offer.

Instead, UK Online - which declined to reveal subscriber numbers - is able to offer an entry-level 512k service for just £9.99 (compared to £19.99 a month via BT) because it's using a cheaper alternative to BT Wholesale, which provides the vast majority of DSL in the UK.

Its 2 Meg service costs £19.99 a month (compared to £29.99 a month via BT) and its 8 Meg service is £29.99 a month. BT has yet to launch an 8 Meg service.

UK Online general manager Chris Stenning said: "LLU enables us to offer more innovative products than our competitors. Our unique 8Mb service has led the way on speed and now we are leading the way on price."

A spokesman for BT said: "It all looks good on paper but it's only available to fewer that one in five of the UK population. With BT you get twice the speed but not twice the cost." ®

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