British ISP Pipex is to invest £2 million in subsidising the installation of ADSL services.

Aimed primarily at residential users, the move is designed to kick-start the UK's fledgling broadband market.

The money will be used to cover the installation costs for 40,000 new customers who sign up to a DIY self-install ADSL product.

The monthly subscription cost of the single user product, PIPEX Xtreme Solo 512Kbps, has also been priced competitively at £29.95 (excluding VAT).

David Rickards, MD of PIPEX, told The Register that 2002 is going to be a big year for broadband in the UK and that the money from its Broadband Development Fund is an investment to attract new customers.

However, the competitively-priced monthly subscription means that margins are tight.

But if Pipex - which has some 1,400 broadband customers at the moment - can swell its customer base over the next six months or so as expected then today's initiative will be looked at closely by other ISPs.

Pipex is also spending £3 million on a marketing campaign to get people to sign up to its deal.

E-envoy Andrew Pinder has backed Pipex's bold move claiming that this initiative will "continue to bring broadband benefits to more businesses and consumers".

To find out more visit www.xtreme.pipex.net. ®