BT is offering a special deal on its recently launched Yahoo Broadband service.

The company is offering free activation up until 21 December, and a free broadband modem if it is ordered online and activation takes place before 21 January 2004.

Offline sales of the SpeedTouch 330 ADSL modem are available at the discounted price of £40. The usual price is £70.

Pierre Danon, chief executive of BT Retail, said: "Broadband continues to be at the heart of our strategy, and delivering the benefits of our solutions to customers at a good price is paramount to us. Wherever it's possible for us to make broadband more accessible to people, we will.

"To deliver on our promise of 5 million broadband users by 2006 means we'll continue to improve and demonstrate the benefits that broadband can bring to the home and the workplace."

To qualify for the deal customers must order online between October 1 and December 21.

Monthly rental is £29.99 and includes a pop-up blocker email protection, virus protection, parental controls, up to ten additional email addresses, and 15Mb of personal web site space. Customers can charge the service to their BT bill.

Full details of the service are available at:

This follows news that cable internet supplier, Telewest, is tempting customers with the offer of free installation on all its Blueyonder broadband services.