From the 19th January BT Openworld and the newly formed BT Yahoo! Broadband will offer a 1Mb service to its customers. The service will cost £40.99 per month and free for current subscribers to upgrade to.

However there will be limitations; the 1Mb service will only work for users living within 3.5km or so of a local exchange, compared to 6km for 512k services.

As an incentive, new customers who sign up online will benefit from a free modem and a waiver on the £70 installation charge although phone orders will have to pay £25 for the modem and activation.

Both offers apply until 31 March