British Telecom is set to announce plans to slash the cost of its broadband internet services.
The move is an attempt to stimulate the market for high-speed Internet access.
The group is expected to unveil substantial reductions in its charges to Internet service providers.
BT hopes by lowering the cost to providers, such as Freeserve and AOL, they will in turn reduce the cost to consumers which will boost demand.
The group would not reveal what the price reductions would be, but it is expected to substantially slash the £30 sterling a month it currently charges Internet service providers.
In turn this would significantly reduce the cost for consumers, who currently pay around £40 a month to providers to use the service.
BT is also looking to reduce the £150 charge for installing broadband lines through the introduction of "plug-and-play", which simplifies installation and reduces the cost to £50.
PA