BTopenworld, BT's mass market broadband internet division, yesterday announced price cuts alongside a new advertising campaign in an attempt to increase the number of people using broadband services.

The company, which currently has around 45,000 broadband subscribers, will offer half price installation fees to Home500, Business500 and Business500+ subscribers until 31 December.

"Our [scheme] will ensure even more people benefit from the speed, convenience and great value of always-on high-speed internet connection," said Andy Green CEO of BTOpenworld.

Customers will now pay £74.99 for connection to the Home500 package, £75 (excl. VAT) for Business500 and £130 (excl. VAT) for BT500+.

But perhaps a promotional reduction in pricing isn't enough — prices for broadband installation are in almost all cases well over £100.

"BT can't afford to subsidise the cost of broadband [long term]," said a spokeswoman at telco watchdog Oftel. "Cable companies and other operators have repackaged BTopenworld's services, which means prices are coming down, competition will dictate this."

BTopenworld today announced it is shelving its long-term broadband strategy to create a portal for broadband content and will instead be focusing all its energy on access.