Feeds

BT delay saves Freeserve big money

ISP is not happy

  • alert
  • submit to reddit

Security for virtualized datacentres

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

Beginner's guide to SSL certificates

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.