25 September 2000

Internet service provider World Online last Friday axed its unmetered web access service, blaming the sloth of British Telecom in introducing Friaco, its flat rate tariff for ISPs.

This should have been available in June but the telecoms titan has yet to agree terms with ISPs. So far Friaco is only on offer via local exchanges, whereas most ISPs want to connect to the BT network at main telephone exchanges.

World Online claims the rates it was paying BT eroded all profit from its unmetered offering: "We have been waiting and waiting for BT's Friaco product to be available," said a World Online spoke. "We were subsidising our current customers to such a degree."

The ISP has now revamped its package, charging £14.99 monthly for one hundred free hours plus one penny a minute thereafter. Customers also pay £9.26 per month line rental.

Existing customers have been notified that the revised package will take effect from October 11, while has been applied to new subscribers since last Wednesday.

News source: BBC Online Business News