BT cuts satellite broadband prices

BTopenworld has shaved a £10 off the price of its satellite broadband service, but it's still too expensive for ordinary consumers.

The service has been on trial in Northern Ireland and the highlands and islands of Scotland and has now become available nationwide.

The cost of the single-user version of the service is being cut from the trial price of £69.99 to £59.99, though the £899 installation fee is not being reduced.

This is very close to the prices that one of BTopenworld's main rivals, Tiscali, is charging for its trial satellite product - £59.99 per month and a £890 flat fee for trialists who decide to use the service full-time.

Tiscali and BTopenworld both resell a satellite service from the Israel-based company Gilat Satellite Networks.

BT sees satellite as a key technology for bringing broadband to the 30 per cent of the country that is not covered by ADSL broadband.

However, at current prices it's just aimed at small businesses. A BTopenworld spokesman said: "We're not targeting this at consumers for the moment. We want to see how it works for businesses before we start considering a consumer launch."