What is BT doing to push the expansion of broadband in the UK I understand that there has been a slow uptake from consumers.

Asks Owen

A. There has been a slow uptake of broadband services by consumers in the UK because installation has been expensive (approximately �150 at the beginning of 2002) with high monthly rental charges added on. Add to this the fact that the existing telecoms network has needed more capacity to handle fast voice and data transmission, and that the public has had to be educated about the benefits of broadband, and you're left with a system that isn't very popular at all. But it appears that BT, under the leadership of its newly appointed chief executive Ben Verwaayen, are now going to address the problem.

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Verwaayen has pledged to place broadband at the heart of BT's future strategy and on 8 April (2002) announced that 50 more towns and cities would be linked up to high speed Internet access, backing up his commitment to reach five million broadband connections by 2006. Industry insiders believe that since BT cut its prices in February 2002 it has been inundated with requests for the service and that they are now connecting 10,000 new customers per week.

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To deal with this increased demand BT is boosting capacity on current exchanges and is currently converting some 100 old exchanges, bringing the total of broadband enabled exchanges to 1,100.

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Q. Is it possible that BT will be able to continue generating this amount of custom and fight of scepticism

A. It has got off to a good start but some City analysts believe that it has a big job on its hands if it is to catch up with its rivals: NTL and Telewest have already bagged 12.1 million customers between them for high speed Internet access. The City also believes that BT's network, 40% of which needs upgrading, will hold it back and that at least �10 will have to be spend in upgrades when the company is already �13.6 billion in debt.

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Q. Has BT slashed its prices since February

A. BT cut its basic monthly rate from �25 to �14.75 in February and has followed this up with a huge marketing campaign, launched in March, which is reported to have set the company back �10 million. The campaign is aggressively marketing the benefits of high speed broadband connections, especially its new Plug and Go product which enables BT's customers to install the product themselves instead of having an engineer do it for them.

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As part of the campaign, two million CDs that explain the benefits of high-speed connections and allow potential customers to register for the self-install product have been distributed through high street shops, backed up an online and national press advertisements.

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Q. What does BT now offer its new broadband customers

A. On 5 March (2002) it launched Plug & Go with a free line activation offer, which effectively waives its �65 line activation charge on all orders received before 31 May 2002. A one-off equipment charge of �85 is levied and then once installed; the Plug & Go monthly rental charge is �29.99.

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Existing customers paying �39.99 per month also had their monthly rate slashed to �29.99 on 1 April. Customers that still need engineer assistance will still be able to use BT Openworld's New Home 500 product but will be charged a �250 installation fee, and then �29.99 per month.

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More information is available online at www.btopenworld.com/broadband.

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Q. How is the Plug & Go system actually installed

A. All customers are sent an ADSL equipment pack when they register for the service. Once received you have to contact BT who agree a broadband activation date (minimum of 10 working days) and then they conduct some tests on your line to ensure that the system works on your phone. BT then confirms that your line has passed their test and you plug in the supplied ADSL filters into your phone socket, connect the ADSL modem and upload the supplied software (on CD - PC and Mac compatible) onto your computer.

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Q. Why has BT been in a row with Freeserve lately

A. Freeserve has reported BT to the telecommunications watchdog, Oftel, for unfair competitive behaviour. Freeserve has a deal with BT whereby BT technically connects and delivers its Internet service to its 2.4 million customers in the UK. Freeserve believes that BT is exploiting its position as the owner of the UK's national telecoms network, by using its name to attract customers to its own broadband product - BT Openworld - instead of promoting its connection with the other Internet companies it has deal with.

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Added to this, it believes that BT Openworld (BT Openworld is owned by BT, but managed as a separate company under Oftel rules and it cannot allow its ISP business to gain competitive advantage from its wholesale business. It is also prevented from using its customer billing information to target broadband or Internet services at specific customers) is being cross-subsidised by BT so that it can offer free installation of its broadband services when its rivals cannot afford to. Freeserve has demanded that Oftel launches an investigation into BT's predatory pricing under the Competition Act. Oftel have yet to comment on the case.

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By Karen Anderson