Onetel, the low cost telecoms company in the UK, is retaliating to UK Online's cheap broadband announcement, upping the ante and probably about to start a fevered broadband price war in the UK over the next couple of months.

In what seems a tit for tat announcement between all the broadband providers, Onetel believes its offer, is the one to have, well for the time being at least.

From today all existing broadband customers will automatically have their speeds increased to up to 2Mb over the course of the summer and new customers will be able to sign up to a 2Mb capped broadband line for just £20 a month.

A cap of 2Gb has been applied to the cheaper connection, but Onetel believes that this won't affect too many customers - just as long as they don't like watching Quicktime movies or surfing the web too much then.

Those concerned by the capping can opt for a 2Mb uncapped line for £24 a month. Customers looking for a real deal can add a pound onto the monthly fee and get free evening and weekend landline calls for £25.