ONYX Internet is offering permanent Internet access to Tyneside businesses via telecoms giant Telewest Communications.

Under the deal, the Middlesbrough Internet pro-vider will use Telewest data circuits in Newcastle, cutting the cost of permanent connections by as much as 50 per cent.

BT has recently come under fire from industry experts, watchdogs and the Government for its reluctance to allow competitors access to local exchanges, which would allow competition in the Internet market.

Neil Stephenson, operations director at Onyx, said: "This deal will change the face of business Internet access on Tyneside.

"BT currently has a stranglehold over the 'local loop', the last few yards of connectivity from the business to the local junction box at the end of the street. This has given BT a monopoly that has kept the cost of Internet access artificially high.

"This new deal will mean fast, reliable Internet access for businesses at an affordable price, meaning more companies can take advantage of the opportunities provided by the Internet."

He said: "If successful, this could represent the long-term solution to a problem that is limiting the development of the UK's knowledge economy, and it clearly demonstrates our understanding of the corporate community's Internet needs."