As of 1 July BT Yahoo customers may be able to save on their broadband costs. The ISP has introduced discounts ranging from £2 to £11, which will be applied to subscribers' accounts automatically.

The biggest saving is for those upgrading from the 500K service to the 1Mbps service. The faster service will cost £29.99, the same as the 500K service before the price reductions were introduced.

However, BT Yahoo has sneakily introduced usage capping – something subscribers could be forgiven for overlooking among BT's price reduction fanfare.

According to a statement on the ISP's website. 'One of the ways we've identified to cut costs is to introduce a monthly usage allowance. By matching what you use with what you pay, we can make the pricing of our broadband services fairer. Prices for most of you will be lower, although a few who use the service a lot may have to pay more.'

Under the new pricing policy, 500K broadband customers will be able to upload and download a total of 15GB of data per month, while 1Mbps customers can grab twice that amount. Although the limits sound generous, they will cover all forms of online traffic. This means emails sent and received, MP3 files transferred, audio and video streamed, websites browsed, photos uploaded and so on will all count towards the total amount.

Usage capping will come into effect early next year, with top-ups likely to cost around £2 per gigabyte.