Broadband finally seems to be making inroads into our houses with the announcement today that over 5 million people are now surfing online using broadband. Furthermore It will surpass eight million by the end of next year, according to figures compiled by Telecom Markets' Broadband Subscriber Database.

The figures come just as Tony Blair announced yesterday that's within its ten point plan for Labour's third term he wants all homes to have broadband by 2008.

Telecom Markets' Broadband Subscriber Database analyst Gareth Willmer believes "In the next year or so subscriptions will rise rapidly owing to falling prices, VoIP launches and increasing competition from alternative broadband carriers. Falling prices of unbundling could be a key driver of an increase in UK broadband subscriber numbers, as has been seen in France."

Currently 40 per cent subscribe to BT's Broadband package directly, but the majority subscribe to a services offered by other ISPs.