The report by analysts Datamonitor said high-speed net services were popular because intense competition was driving awareness to new highs and prices to new lows.

Datamonitor said it expected the dash for broadband to peter out in two years time when European user numbers topped out at 60% of households.

It predicted that up to 8 million UK households will have broadband by 2008.

Read on: Home broadband sign-ups 'soaring'