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The move by AOL on it's uncapped silver service mirrors BT, which pared £2 off its own 512Kbps service to £17.99 at the beginning of the month.

Wanadoo however offers a 1Mbps broadband service for the same price, albeit with a 2GB limit.

AOL says it will offer some of its customers trials of a 2Mbps service, although prices have yet to be announced.

ntl today said it was upgrading its customers with essentially up to 50 per cent extra free, so its 600Kbps customers move up to 750Kbps and 1Mbps customers jump to 1.5Mbps.

The cable operator also launched Broadband Lite for small businesses which features a 750kbps service for £24.99, and £34.99 for the 1.5Mbps service. Business services also include a free domain, ten email addresses and a round the clock support service.