"LONDON (Reuters) - BT Group Plc, Britain's dominant fixed-line telecoms operator, on Monday launched its first low-cost, no-frills, high-speed Internet service in a move to boost a key growth division and face off fierce competition.
Around two million customers in Britain use BT's mid and higher-priced Internet services -- BT Broadband and BT Yahoo! Broadband -- but BT said it was aiming at more cost-conscious customers with a new offer for about 20 pounds ($37) per month.
BT, which plans to win five million broadband customers by the end of 2006, is relying on its broadband division to boost falling revenues as it is one of the few major European telecoms operators to control no growing mobile phone network operator.
But BT Yahoo! has clinched only about 48 percent of the British market, the lowest share of any Internet company owned by a former European telecoms monopoly. At almost 30 pounds per month, it is considerably more expensive than rival offerings. Analysts welcomed the new BT Broadband Basic deal and said the group now had to show it could convince customers not only to sign up to its entry-level package, but to upgrade in time to a more expensive service that will help boost margins."
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