Wanadoo fires new salvo in broadband price war

Wanadoo has slashed the price of its 1 Megabits per second (Mbps) broadband service to only &£17.99 – less than two weeks after the internet service provider was hauled over the coals by the Advertising Standards Authority for claims that its 512 Kilobits per second (Kbps) service, which it was selling for the same price, was “full speed broadband”.

The ASA investigated complaints from rival broadband operators BT and Telewest Broadband over press ads headlined “Full speed broadband for just &£17.99 a month”, when other, faster services were available. The ASA ruled that calling 512Kbps broadband “full speed” was misleading and ordered Wanadoo to drop the claim. A spokeswoman for Wanadoo says the latest price cuts were “not connected” to the ASA ruling.

Wanadoo, a subsidiary of France Telecom, will be running amended versions of its television ads for the new 1Mbps “Broadband for the Masses” package claiming it is “twice as fast as standard broadband”, according to the spokeswoman. She adds: “Most people would say that 512Kbps was standard – Ofcom has said that anything less than 512Kbps isn’t broadband at all.”

The &£17.99 package comes with a 2 gigabyte monthly download limit. A package for above average users with a 6Gb limit costs &£22.99 a month, and a heavy usage package, with a 30Gb limit, costs &£27.99. BT’s cheapest 1Mbps service has a 30Gb limit and costs &£29.99, although a BT spokesman points out that its broadband services include dedicated content through partnerships with MSN and Yahoo! and benefits such as parental controls.

There are now nearly 4 million broadband subscribers in the UK. While BT has a 41 per cent share of the market, rivals – including Wanadoo, AOL and Tiscali – have been making significant inroads.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here