Tiscali hits UK broadband market

Europe's third largest Internet service provider, Tiscali, has launched a broadband package aiming to win over dial-up consumers.

The company, based in Sardinia, has introduced an ADSL broadband service for £16 (€22) per month in the UK.

This is a similar price to the cost of most dial-up connections but its speeds are up to three times faster.

The loss-making firm hopes to boost its broadband subscriber numbers in an effort to achieve its first net profit in 2005.

Recently, Europe's Internet service providers launched aggressive campaigns to recruit broadband subscribers whose business yields higher margins.

Last month, Britain's leading broadband firm, BT Group and its new content development partner, Yahoo, launched a multi-million pound advertising campaign to promote their new broadband service.

Rival AOL Time Warner's local internet unit responded with a major advertising drive of its own.