BT will be required to offer other operators a new wholesale unmetered Internet access product known as ST FRIACO (Single Tandem Flat Rate Internet Access Call Origination) from 26th February 2001.
Under the new arrangements, operators will be able to offer consumers unmetered internet access by connecting with BTs network at its main regional exchanges for a flat rate annual fee.
ST FRIACO is an addition to the current FRIACO product which Oftel has required BT to provide since June 2000. BT’s sluggish rollout of FRIACO was much criticised by its competitors.
The current FRIACO product conveys internet calls to BT's local exchanges. ST FRIACO conveys them across BT's network to the operator’s own telephone network.
Oftel says that increasing the range of wholesale products available to operators should boost competition in the provision of unmetered access and will mean that a greater number of consumers will be able to get unmetered internet access more cheaply and easily than before.
Operators will be able to compete more effectively with BT and each other in offering a greater variety of unmetered Internet access services, some of which might not otherwise be available to consumers.
Oftel has admitted that, in the short term, capacity at the main exchanges will be limited. Therefore the decision includes measures to ensure that BT's network is able to handle the anticipated increased amounts of Internet traffic and that capacity is used as efficiently as possible.
BT will also be required to take steps to ensure that all reasonable demand for ST FRIACO can be met without limitation from February 2003.