Topic: BT Must Cut Unmetered Charge By 17%

[Tony]

http://www.ispreview.co.uk/cgi-bin/news/viewnews.cgi?id=EpVlZZuyFVwChWImqC
News - July 21, 2003
BT Must Cut Unmetered Charge By 17%

By: MarkJ @ 9:03 AM - Comments () - SendNews HERE / PrintNews HEREOftel has officially ordered BT to cut its wholesale unmetered dialup charges (FRIACO) by a staggering 17%! The move could allow some ISPs to cut the cost of their services, provided operators pass the discount on.

The regulator found that BT had been charging operators for certain call routing and call management measures that were no longer necessary.

The regulator had previously proposed cutting the charges in April, when it said that savings from any price cuts could be passed on by the other operators to their Internet service provider customers.

"The action taken today ensures that BT continue to recoup the cost of providing wholesale unmetered Internet access, and that UK consumers continue to benefit from one of the most competitive dial-up Internet access markets in the world," Oftel director-general David Edmonds said in a statement on Monday.

The investigation was opened following a complaint from Cable & Wireless Plc , one of BT's telecoms rivals.

Oftel said that whereas BT once used one of its own types of networks to manage dial-up traffic, improvements in late 2001 meant the company no longer had to use this network. But BT still included charges for using that network in its wholesale dial-up pricing, regardless of whether wholesale buyers such as Cable & Wireless needed that level of service.

17% is such a significant reduction that ISPs may, this time, find it much harder to sideline the cut as an insignificant drop that would not affect their service pricing.

 

[Clive]

I'm not sure if it will benefit the likes of you and I as it's aimed at wholesalers who need not pass the savings on.  But we will wait and see.  

[Adept]

Now they are saying:-

ISPs Won?t Pass On FRIACO Savings

By: MarkJ @ 8:56 AM - Comments () - SendNews HERE / PrintNews HERE
Following yesterday?s news that Oftel would force BT into cutting its wholesale unmetered dialup (FRIACO) charges by 17%; today UK ISPs and operators have hinted that the cuts may not result in cheaper dialup for end-users:

"It's far more likely that ISPs will invest any saving, to bolster their service and add additional content," Jonathan Lambeth, head of corporate media relations at AOL UK, said.

"I'm confident that AOL UK will pass on any benefits to consumers -- it's much better to do it in terms of better content and better customer service," Lambeth added.

Large telcos such as Cable & Wireless and Energis buy BT's wholesale unmetered Internet access product and resell it to ISPs. Some sources in the industry are already indicating that these operators will absorb the savings rather than lowering their prices.

Typically other ISPs, such as BTOpenworld and Freeserve, have declined to comment. It remains to be seen exactly how the reduction will play out, although simply absorbing such a significant cut 'may' appear selfish. More @ ZDNet.

From http://www.ispreview.co.uk/cgi-bin/news/viewnews.cgi?id=EpVllypyEZbmXvdTFq