BT was attacked by Oftel yesterday over its £40 monthly charge for high-speed internet access, after a survey by the telecommunication watchdog found consumers wanted cheaper web services. A survey by Oftel of 2,070 consumers found that those interested in asymmetric digital subscriber line technology - which delivers internet access at about 10 times the speed of today's modems - were only prepared to pay an average of £13 a month.
Oftel said that even with an additional monthly fee of £10 to have unmetered access that meant the total charge would still be short of the £40 being quoted by BT Openworld.
However, BT said yesterday that £13 would not cover its costs of offering ADSL services.
ADSL, which is just being rolled out, has had at least 100,000 possible users express interest. It also allows the delivery of video on demand and traditional television services via telephone lines.
A BT spokesman said the company had conducted its own marketing and research which suggested customers were prepared to pay its £40 charge. "We believe it's competitive and that people will pay this price."
At least 30 other companies are planning to offer ADSL services - a move which is expected to lead to price competition.
Oftel said not even higher-income groups or keen internet users were prepared to pay more than £13 on average. Only larger households were willing to pay more, but then only £20.
Oftel's survey was conducted by Mori in May and also found one in four homes is connected to the internet with the majority of users online for little more than one hour a week.
