Feeds

BT delay saves Freeserve big money

ISP is not happy

  • alert
  • submit to reddit

Remote control for virtualized desktops

BT footdragging over unbundling the local loop is saving Freeserve around £300,000 a month. That's how much extra subsidy the ISP would have to shell out, if it were able to satisfy customer demand for unmetered access.

Currently, Freeserve has 250,000 customers signed up - at £10 each per month. And it's losing a couple of pounds on each account. But CEO John Plutheroe says the company would have had 400,000 on its books if BT had got its act together.

BT inertia means that sign-ups are limited to only 2000 a day, he told the Daily Mail.

So why the hurry, if it means losing so much money? Well, Freeserve reckons the unmetered access business will move into profit as soon as Christmas. That is, however dependent on the introduction of FRIACO (Flat
Rate Internet Access Call Origination), a more favourable wholesale Net tariff structure, by BT. FRIACO was originally slated for a June/July launch.

More importantly, the free-access-but-pay-as-you-go ISP model pioneered so successfully by Freeserve is - except for very low-usage customers - effectively dead in the water. Flat fee access delivers what Intel's Andy Grove would describe as a strategic inflection point - in other words, a fresh opportunity for competitors to attack the soft underbelly of Freeserve's 2.1 million customer base. It is crucial for Freeserve that it does not falter during this time. ®

Related Stories

Freeserve in Xmas FRIACO deal
FRIACO hit by telco stalemate

Intelligent flash storage arrays

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.
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.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?
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.