Thank you for your letter of ... to the Prime Minister concerning the cost of Internet access. I have been asked to reply.

I am sorry that you are unhappy with the manner in which CWC charge for access to the Internet. I should initially point out that while the Government is keen that the benefits of the information superhighway should be made available to as many people as possible it is also aware that the diverse range of telecommunications services now on offer is as a result of investment in the industry by cable and other telecommunications operators. It is therefore considered appropriate that these operators should have some degree of freedom in the way they package and price their services.

I would not necessarily regard the charging of services as a disincentive to access the Internet, particularly as it is not unusual for people to be unable to access the Internet because some tend to be permanently connected when there is no usage charge. ISPs have only a finite number of modems to which customers may connect. Customers who remain permanently connected can therefore block access for others. The charges for the telephone call should therefore serve to inconvenience those who remain connected for long periods even when not actively using the Internet. In turn this should help ensure the majority are not prevented from accessing the Internet.

The Government is committed to making access to advanced online services available as widely as possible. Although there are no direct proposals to reduce Internet connection charges as such, the Government aims to ensure the continued development of the UK market in telecommunications and will continue to reduce overall costs for as many people as possible. Additionally, other initiatives from telecommunication companies, such as the special offers by cable companies and BT to offer very low fixed price access for schools, will make good quality access available far more widely where it is needed most; in the education sector.