There are plenty of web hosting companies offering low cost shared hosting that has continued to get cheaper over recent years. Cheap web hosting is particularly prevalent in the US where bandwidth is much cheaper than the UK and Europe.
Shared hosting is the most profitable way of offering a hosting service, as lots of customers can be hosted on a single physical server. However there are numerous drawbacks to choosing a shared web host purely based on price. Before choosing your web host consider that a cheaper provider may end up costing you more in terms of time as well as money.