BT today slashed the wholesale cost of high-speed internet access in a move which could mean lower costs for the consumer.

The telecoms group is reducing the amount it charges service providers such as Freeserve and AOL to use its broadband network, which is ten times faster than dial-up connections.

It is cutting wholesale line rental for consumer connections from £25 a month to £14.75 from April 1.

BT hopes the providers will use the savings to set new prices for both consumer and business customers and help boost demand for broadband.

Chief executive Ben Verwaayen said: "Broadband is the future for Britain and we're putting it at the heart of BT's plans for growth in the UK mass market.

"This will drive the whole market forward by making broadband affordable, attractive and accessible."

As well as cutting the amount it charges providers for access to its network, BT is also introducing a number of other measures to encourage the take-up of broadband.

They include improving network performance and service quality as well as ramping up marketing.

This will include joint projects between BT Wholesale and more than 40 service providers to "champion the benefits of broadband".

BT also said it would seek partnerships to extend broadband to less commercially viable areas.

Mr Verwaayen said: "This is a stretching programme, but achievable. Through substantial reductions in the cost of providing service we can set prices that will stimulate the market strongly, and make money on it.

"This is a sustainable business model."