Dial-up dearer than broadband: Official

With the majority of the UK now on broadband, the cost of a fat pipe connection has fallen to below that of its narrowband equivalent.

According to price comparison website SimplySwitch.com, unlimited dial-up packages have become more expensive than the same packages on broadband for the first time as narrowband is being "priced out of the market".

The comparison site also found that making the switch can even pay off for light users - the study suggests that people spending over two hours online a week will save money by switching from a pay-as-you-go dial-up package to a broadband subscription.

Broadband price-drops are thought to have been inspired by the recent crop of free broadband offers from the likes of Carphone Warehouse. Recent research found levels of customer service are often poorest for lower priced offerings.

Three-quarters of internet connections in the UK are now broadband, according to the Office of National Statistics.