Pipex invests £2m to get 40,000 DSL users online
Major play for broadband share
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. ®
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