UPDATE: Added a responce from BT. Reports in yesterdays Mail on Sunday newspaper have pointed to a "senior company source" inside BT, whom claims that the operators £10bn 21st Century Network (21CN) plan will be switched on a year earlier than expected. But that's not all.

21CN had been due to go live in 2009; however the new information suggests that 2008 is more likely. The most interesting part is this:

"The 21CN system will give customers a broadband dialtone - meaning broadband will be available just by plugging a computer in as part of basic line rental"

This suggests that there would no longer be any need for an activation fee (at least not by BT itself), removing one of the most irritating charges for new adopters.

The 21CN network is also expected to be more flexible with data consumption and speeds, hinting that we might see a greater variation of metered style broadband packages. There are pro's and con's to this, although it could be the final nail in the coffin for dialup modems (if done correctly).

====================
UPDATE:

The Register has managed to get a response from BT, although it's still a little vague:

But a spokesman for the UK's dominant fixed line telco distanced himself from the report saying broadband "would not be free".

It may be that a "broadband dialtone" may be available for rental - much like current arrangements for fixed line phone - but it is "not to be free", he told us.

Indeed, the telco has yet to work out how it plans to price products in the future. It's possible that a broadband line might be bundled with other services, but he stressed it would "not be free".