BT is now offering customers its Total Broadband Option 1 package from £7.95 per month for the first three months.
With the price reduction coming into effect today (April 1st), the telecoms provider will also be scrapping local rate customer support numbers and introducing free 0800 numbers.
The Total Broadband package - which previously cost £8.95 per month - will also include a free wireless router worth £25 for those buying online, as well as a 5 GB download allowance and online security software included.
Advertised as the UK's "most complete" broadband package, it also includes free UK evening and weekend calls and is BT Vision ready.
The price reduction affects those taking on an 18 month contract, which would cost £15.99 per month after the introductory period had ended.
BT has also announced that it has reduced prices across its other broadband packages, with its unlimited usage Option 3 package available from £18.99 per month for the first three months.