BT has announced that it is cutting the price of its broadband services, however at the same time setting limits on the amount of data users will be able to download.

From July, a monthly subscription to the no-frills 512Kbps BT Broadband package will cost £24.99 per month, down £3 from £27per month. The main price reduction however is with the BT Yahoo Broadband 1Mbps service which drops £10 from £40 to £29.99.

Yet it's not all good news though. The internet service provider is setting limits on how much its customers will be able to access. Customers using the 512Kbps connection will now only be permitted to download 15Gb of data a month while users of the 1Mbps will have their connection restricted to 30Gb per month.

BT states that the restrictions allow them to reduce the price and that for the average user they won't notice any difference, however 15Gb although sounding a lot, doesn't amount to much if you are planning on downloading movies or plenty of tracks from music download sites, that combined with a large batch of emails and you might incur problems towards the end of each month.

"There's only a very small number of very heavy users it will affect. If these guys don't want to use our service, that's their option," said a BT spokesperson.

These price reductions coincide with other price restructuring on BT phone packages which are also planned for the 1st July. However no price reductions have been planned for Business users.