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People using satellite broadband

UK satellite broadband provider Avonline has vowed to implement a price freeze in January, despite the increase in value-added tax.

On January 4th 2011, VAT will increase by 2.5 per cent to 20 per cent, although the internet service provider (ISP) will not pass on this cost to its subscribers.

As a result, businesses and consumers will still be able to sign up for the firm's 3.6Mb Tooway Broadband Service from just £19.99 per month.

Craig Roberts, Avonline's Broadband Services Manager, said the ISP is committed to offering the best possible price to its customers.

"Our current offer of our standard package at just £19.99 per month service charge is proving to be very popular and we've seen a surge in uptake," he stated.

"We hope to keep the offer open until the end of the year providing we have sufficient systems available. I advise potential customers to check our web site for availability of the special offer."

Since July 2009, Avonline has enabled consumers living in rural area to gain access to download speeds of up to 3.6Mb – far in excess of those provided by a fixed landline connection.

The ISP claimed that customer take-up in rural areas has been "significant" in locations where there was either no reliable broadband service, or no service at all through the UK telecoms network.

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