BT has cut the price of its unmetered internet access package, Surfport24, by almost 40 percent, a move which may mark the beginning of universal internet access price cuts.
The company denied the reductions were due to pressure from other ISPs.
"We got a lot of feedback from ISPs. The catalyst, however, was the change in Friaco pricing," said a spokesperson at BT.
Friaco (flat rate internet access call origination) was proposed as a fixed amount BT should charge other service providers for unmetered internet lines.
"We are simply passing the price cuts on to our customers. It really is as simple as that," said a spokesperson at BT.
Telco watchdog Oftel confirmed the Friaco price reductions and added that another review, due in September, "could lead to further price cuts for internet users".
Other ISPs are expected to follow suit.
"We are reviewing prices," said a spokesperson at AOL. "Obviously any price reductions we can make will be beneficial to our users."