It's now all but confirmed that BT will tomorrow announce price reductions for their IPStream based Home500, and Home 1000 products, effective 1st July 2004. It's been a long time coming.

As suspected, BTYahoo's "500" service will be reduced by £3, to £26.99 (inc VAT) for those subscribers paying by monthly Direct Debit. Subscribers paying for this service via Credit Card will still be getting a discount, although of a slightly lesser amount of £2, down to £27.99 (inc VAT) per month.

BTYahoo Broadband 1Mbit customers will see the biggest discount of over 25% knocked off their monthly bill, with Direct Debit subscribers finding their monthly bill reduced by £11 to £29.99, and Credit Card subscribers reduced by £10, to £30.99 (again, both prices inc VAT, and are monthly). This sees quite a major price alteration for the ISPs 1Mbit service which previously cost over £40, but now will cost less than £30.

In all cases, Credit Card subscribers will pay a slightly higher charge due to the increased cost in collecting payments - a common practice by companies these days.

Despite the discount, BTYahoo continues to be one of the more expensive broadband ISPs on the market today. Many rival ISPs are offering unlimited broadband packages for under £25 per month. However, BTYahoo customers can now try and work out what to spend their extra disposable income on.

Talking of bandwidth allowances, BTYahoo should also announce tomorrow confirmation of the capping of their 500 and 1000 products next year which we revealed yesterday. 15Gb allowance per month for BTYahoo Broadband 500 customers, and 30Gb allowance per month for BTYahoo Broadband 1000 customers.