We investigate the common misconceptions surrounding unmetered use

So if the revenues aren't there then how can some ISPs such as Freeserve offer a maximum of 10/11 hours usage per day at such a low price point? 123 ISP believes they know, "I *suppose* that Freeserve have Wanadoo subsidising them for what goes over their costs on FS Anytime."

V21 followed by going into slightly more detail and explained that, "companies like Freeserve and BT will, I believe, always be able to offer more for less whilst they retain such a large base of users. One of the keys to the success of any contended system is down to its size.

The more users, the more ports, and the more chance of a big enough percentage NOT using the system that day to accommodate the usage fluctuations. What their system does not provide however, is real value for the very light users who want fixed cost access - it goes back to the lighter users subsidising the heavier users."

Interestingly this is a point we picked up on earlier and one that C9 feels very strongly about, "Why should light users subsidise people who are on the wrong package?". Overall everybody seemed to agree that being able to allow for 300+ hours per month (10hr max per day [at least]) at said price point simply wouldn't work.

The extra cost of staff, networking and the need to make a profit can be so high that such flexibility vs price is often deemed unrealistic by experience ISPs. Indeed the basic math tends to support this.

What The ISPs Say - Part 2 (Solutions?)

Before getting on to our own conclusions we were keen to see what the ISPs might suggest if given the chance to improve the industry, the results weren't unexpected, with Vispa clearly marking the major players, "yep 100% BT / Oftel could help".

V21 was also keen say how they'd, "like to see clear usage limits on all ISP accounts as it really would make everybody's life easier in the long run. The unmetered access market is maturing now and we've all learnt that unmetered does not mean unlimited."

Both V21 and Vispa agreed that the term 'unmetered' is too often confused with 'unlimited' and that this MUST change. The terms 'fixed rate' and 'fixed cost' were subsequently thrown around as two possible alternatives. 123 ISP put things back on course by saying that, "FRIACO and ISDN need to be made cheaper" (BT etc.).

PlusNet took a slightly different view, "I don't think people mind paying a bit extra for quality", implying that higher prices could be the answer. It was at roughly this point that Oftel announced its intention to force a 7% cut in the cost of wholesale FRIACO from BT, something that at the time of writing, has yet to be finalised.

ISP Review was quick to ask how this latest change, if approved, would affect the above ISPs. Firenet was the first to reply by saying that they might, "keep the pricing the same as before". On the other hand PlusNet, a largely balanced (economical) provider, noted that they 'may' attempt to pass the savings on with a minor price cut.

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