LINX cuts prices - is cheaper broadband next?

Growing levels of internet traffic have allowed the London Internet Exchange (LINX) to slash connection prices by 15 per cent.

The LINX, a non-profit organisation that connects internet service providers through switches in six co-location sites in London, said it would like to see the price cuts passed onto internet users.

Vanessa Evans, LINX sales and marketing manager, said: "[L]ower pricing comes at a time when many ISPs are seeking to attract new customers through lower prices for broadband services. It offers them an opportunity to cut costs in an increasingly price-competitive market for end users."

Internet traffic at LINX amounts to more than 82Gbps at peak times - more than 33 per cent higher than last year. LINX's membership has also grown by more than 20 per cent over the same period to a total of 180 organisations around the world. For this reason, the organisation has cut the costs of connection facilities by 15 per cent.

In an email to members, LINX chief executive John Souter said: "This follows an internal review of our financial situation which shows that we are ahead of budget at present, due in part to the fact that we are growing faster than the assumptions made in the summer of 2004.

"The board considers that we are in a strong position, with good reserves and better than expected growth. As a mutual association, we should reduce prices whenever a suitable opportunity presents itself."