Feeds

BT's U-turn could drive competitors off the road

New packages do away with interconnect fees, cut off air supply to free ISPs

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

BT's seemingly groundbreaking decision to "slash the cost of dial-up Internet access" is not all it seems. Aimed at ISPs rather than end users, it will only be available for service providers who manage at least 140,000 Net users. Take into account all the complex maths tied up in the offer, users could expect to pay at least £16 for around 30 hours call time a month. Add on VAT and the ISP's cut, and the figure could be nearer £20 a month, if not higher. BT's carrot yesterday was to announce that its new deal "will make it possible for ISPs to launch radically new subscription tariffs which might include unlimited dial-up calls to the Internet for a single monthly fee". The stick, is that BT's move is a competitive backlash at those ISPs and telcos that have been able to offer subscription-free services by taking their cut of the interconnect charges. BT's offer means that the interconnect charges would simply not exist in this new arrangement. And the result is that if Freeserve, say, wanted to take advantage of BT's offer, it would probably have to ditch its own telco, Energis. If that happened, Freeserve -- or any other subscription-free ISP that generated its revenue from the interconnect charge -- would have to make up a substantial shortfall in revenue either by charging a subscription, or by generating more revenue from ecommerce or ads. Not surprisingly, no one at Energis was willing to be interviewed today, although it is expected to issue a formal response later this afternoon. Freeserve was equally tight-lipped. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.