Cable company Telewest yesterday reduced the price of its Blueyonder broadband service by £8 a month, putting pressure on other service providers to follow suit.

Blueyonder will now cost £25 per month for always-on cable modem services. "Our customers can now get Blueyonder broadband for around 80 pence per day," bragged Gavin Patterson, commercial director at Telewest.

But BT and NTL, which both offer broadband internet services, are charging nearly £40 per month for what appears to be the same service.

"We have offered the service as cheaply as we can this far, but competition will be responsible for pushing prices down. We have no plans to reduce costs at this time," said a spokesperson at BT. NTL was unavailable for comment.

Telewest has now connected more than 21,000 broadband customers, about half the number connected by its giant competitor BT (58,000).

"We expect our numbers will now begin to grow as we are offering the best value for money to broadband users," said a spokesperson at Telewest. "We want to introduce users to the technology age, not scare them with figures."