Breathe is following Line One and Alta Vista in withdrawing unmetered internet access packages. In a statement on the Breathe web site to explain why the ‘breathe freely’ service closed on 10th December, the company says:
“breathe has today announced that it is to close its breathe freely unmetered access service with effect from 10th December, 2000 as the business model is no longer viable.
“Developments in the wider unmetered access market indicate that the only sustainable model for such services is based around FRIACO ('Flat Rate Internet Access and Call Origination'). This imposes a regular monthly subscription fee on the ISP who, in turn, has to pass on this cost to end users. This has resulted in a general market-wide correction of unmetered tariff offers now that the economics of such services have become clearer.”
A spokesman for Breathe told OUT-LAW.COM that the company will neither deny nor confirm at this stage whether it will reimburse subscribers for their £50 subscription fees, although he acknowledged that there could be legal implications if the company refuses to do so.