O2 Broadband will be available in three price plans and existing O2 customers will receive a discount. The cheapest price plan is the Standard Package at £7.50 per month for existing O2 customers and comes with 8MB of speed, The Premium package costs £10 per month for up to 16MB and the Ultimate Package costs £15 per month for speeds up to 20MB. New customers must pay an additional £10 per month on each of the available packages.
The service will initially only be available in major suburban areas meaning that only half the UK’s population will be able to sign up. But O2 has reveled it will increase availability in line with customer demand and aim to attract 1 million subscribers by 2010.
O2 UK CEO Matthew Key said: “The UK broadband market is fuelled by price competition but customers are also frustrated over hidden costs, bad customer service and technical complexity.
“O2 Broadband intends to shake up the market and be a breath of fresh air by offering a technologically advanced service which also meets customer demand for a simple set up, receiving what you pay for with no broken promises.”