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UK ISPs could pass on cheaper prices to broadband customers after the London Internet Exchange (Linx) announced that it has cut its fees.

Linx, which counts nearly all of the UK's ISPs among its members, is an internet peering exchange that connects the networks of different broadband providers together so that data traffic can be exchanged between them.

This week, the group announced a 20 per cent reduction in its membership costs, as well as a further 7.5 per cent cut in fees for use of its 1GigE and 10GigE ports.

Chief Executive John Souter said: "As a mutually-owned organisation, Linx has been cutting its prices for a number of years now.

"We are confident that we have achieved a 'virtuous circle', whereby lowering our prices leads to an increase in the number of members. This in turn leads to greater economies of scale and enables us to continue to cut our prices still further."

A major network hub for broadband traffic in the UK and Europe, Linx has 334 members in total, including 58 of the world's 100 largest ISPs.

It claims to have more peers, sites and internet routes than any other internet exchange point in the world.

Peak traffic through Linx is equivalent to 1.3 million simultaneous videos being streamed over the internet.

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