Internet service provider (ISP) Demon has resurfaced from a self-imposed business backwater to fight for a larger slice of the mainstream consumer and small-business market.

Following feedback from its current customers, Demon looked at the issue of fair usage policies and is now offering higher monthly download limits for its broadband packages.

The ISP hopes this will help to attract customers such as gamers who need a lot of consistent bandwidth as well as consumers who want to use their PCs for entertainment; such as downloading movies and using multimedia services such as the BBC iPlayer.

Matt Cantwell, head of Demon, said: “We never really went away. We have over 100,000 customers split pretty evenly between consumers and small businesses.

"This comeback is significant for Demon as we know competition is fierce in this market. But we felt now was the right time to launch as a more mainstream consumer and small-business ISP.”

He said many people are unaware of the fair usage policies that are part of their broadband service. Using more online content means many risk going over the limit. They face having to pay for extra bandwidth or the threat of their internet connection being cut off or bandwidth throttled.

"Not every ISP is the same and it is not just about price. As more services go online and more people use these, a clear and consistent fair usage policy (FUP) is increasingly important to them," he said.

Demon will be offering a variety of packages that use either the unbundled network of parent company Cable and Wireless (C&W) or leased lines from BT Wholesale.

If a customer is within an area that C&W has unbundled the prices are cheaper and ‘up to’ speeds higher. Matt Cantwell said the C&W unbundled network covers 60 per cent of exchanges at the moment but the company is expanding its reach.

There are four 24-month contracts for home users starting at £15.28 per month for an up to 20Mbits/sec Home 2+ broadband with a 50GB download limit, and £18.21 for its Home Office 2+ which has a 60GB usage allowance.

However the price and usage limits of the new business packages, which are going to be launched next month, are also within the reach of many consumers.

Demon was one of the UK’s first ISPs, founded in 1992. It bought by Thus in 1998 and went very much under the radar of mainstream consumers; tending to concentrate on attracting small and medium-sized businesses and individual customers who were more technically aware. Thus was then acquired by Cable & Wireless in 2008.

“Our advantage is that we know the industry better than anyone and we have the means to deliver the best services at competitive rates.

"We believe there is work to be done to become the best and are determined to lead the way, once again,” said Matt Cantwell.