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Instead of being seduced by the promise of rock-bottom fees, broadband subscribers are now a more discerning bunch, according to O2.

Nick Wilkins, UK PR manager at the broadband provider, explained that whereas broadband offers centred around cheap charges used to hold sway with the customer, now packages offering a higher quality of service are more likely to tempt.

"In previous years a lot of the uptake was driven by 'free' broadband offers, but now people are starting to appreciate the benefits of higher quality services," Mr Wilkins told technology news provider Hexus.

He went on: "Things like the BBC iPlayer mean that people now want higher bandwidth with higher download limits."

O2 last month became the first company in the country to offer mobile broadband, home broadband and WiFi access in a single package. 'Broadband Home and Away' supplies customers with an 8Mb home broadband connection when they sign up to a £20 per month mobile broadband contract.

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