Feeds

BT delay saves Freeserve big money

ISP is not happy

  • alert
  • submit to reddit

Secure remote control for conventional and virtual 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

The essential guide to IT transformation

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.