BT has unveiled a 1Mb broadband product for its BT Yahoo! Broadband service and the frill-less BT Broadband.

Available from January 19, the service will cost £40.99 a month.

The monster telco reckons that around 75 per cent of existing broadband users should be able to sign up to the faster service. Apparently, the 1Mb service only works for punters living within 3.5km or so of a local exchange, compared to 6km for 512k services.

BT's existing broadband users will be able upgrade for free to the new 1Mb service.

For those who can't benefit from that, the telco is adding a wee sweetener to entice people to sign up for one or other of the services.

Punters signing up online to either BT Yahoo! Broadband or BT Broadband (either 512k or 1Mb speeds) will receive a free modem and free connection - a
saving of £70.

Customers ordering by phone will have to fork out £25 for modem and activation.

Both offers apply to all orders placed by March 31 and activated by April 30. ®