Telecoms watchdog Oftel has provided a boost to BT's broadband rivals by ruling that the company must allow them to access its network of high-speed lines at a reasonable price.

Competitors such as Freeserve have long complained that BT enjoys a dominant position in the race to persuade web users to upgrade to high-speed broadband connections.

Although BT cut the wholesale price of its broadband lines to £13.75 in February, Oftel has now ruled it must also make it easier for rivals to tap into the whole of BT's network at "non-discriminatory" prices.

Oftel's director general, David Edmonds, said he estimated there would be 700,000 broadband customers in the UK by the end of the month, with demand rocketing thanks to lower prices of around £30 a month.

BT and cable companies NTL and Telewest have benefited most so far but other companies, including AOL and Freeserve, are hoping new pressure on BT from Oftel will enable them to catch up.

BT's chief executive, Ben Verwaayen, is banking on increased broadband take-up to drive growth at the company. He hopes to have 1 million connections by next summer and 5 million by 2006.

Today's announcement is a further boost to the provision of broadband services in the UK. It will enable operators to offer consumers a wider range of products.

"Prices for these new services will be set by Oftel at a level that encourages competition between different providers of broadband services, and ensures that other operators still have an incentive to invest in alternative broadband delivery mechanisms," said Mr Edmonds.

"The best way to support take-up of broadband services is through a thriving and competitive broadband market, where consumers have choice of products and prices," he added.