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

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.