I think its also a separation of legal entities, proof that no cross subsidy exists etc.

the price of broadband could be coming down...

http://www.bulldogdsl.com/residential/index.asp

have a special offer of 2mb for £29.36 a month (that includes vat)
plus you have to pay for a modem and activation. and I think web space is extra.

that's certainly a lot better that BT broadband's 500k product for a negligable amount more.

this could cause some competition in the market which could result in other players droping their prices or upping their speeds.