BT Group has confirmed it's to cut its wholesale broadband internet charges in the UK from stg£25 a month to stg£14.75.
The move should lower the cost of ADSL connections by allowing ISPs to pass on the savings to consumers.
BT hopes the price cut, which will come into force on April 1, could bring a million high-speed internet users by summer, 2003.
Mr Paul Reynolds, chief executive of BT Broadband, says: "We expect these new low prices to drive up demand for broadband."
He says the cut will provide an important first step in spurring nation-wide take-up.
Ensuring universal broadband access is the cornerstone of Government plans to ensure Britain is at the forefront of global e-commerce.
ADSL (asymmetric digital subscriber line) technology converts existing telephone lines to deliver connections up to 40 times faster than possible with conventional dial-up modems.
BT says the cut will be backed by a marketing drive - including joint projects with other service providers - to champion the benefits of broadband.
It has also promised to redouble its efforts to extend access to less commercially-viable remote areas.