Oftel's David Edmonds, Director General of Telecommunications said yesterday:
"AltaVista chose to launch their product in March, in advance of wholesale products being available. It is up to AltaVista, as other commercial companies, to make sure that before they launch a product they have a sound business plan to support it.
"Oftel wants to see competition in unmetered internet access develop. On 26th May I issued a Direction requiring BT to provide an unmetered wholesale product to other operators. This allows other operators and ISPs to have access to BT's local network on a wholesale basis to offer unmetered internet access.
"BT offered this product, known as FRIACO - Flat Rate Internet Access Call Origination - from 1st June. Further industry discussion has resulted in a further refinement of the product known as FRIACO Hybrid. BT has offered FRIACO Hybrid since 3rd August.
"I am confident that this provides a sound basis to promote competition in unmetered internet access and expect to see more companies providing unmetered internet access packages in the coming months."
BT’s director of regulatory affairs said: “AltaVista is standing reality on its head as it tries to wriggle away from the consequences of its ill-considered marketing hype.”
BT has entered into its first deal to offer unmetered wholesale internet access with telecommunications company MCI/Worldcom UK. Charlotte Steele of MCI/Worldcom today confirmed to OUT-LAW.COM that the company yesterday signed the deal with BT, but said that further details would not be released at this time. It is understood that the agreement will include BT’s first unmetered charges to a telecommunications operator to carry internet calls from local exchanges to regional exchanges.
ISPs have complained that BT was providing consumers with unmetered access but delaying the roll-out of a wholesale product for other ISPs. Although some ISPs are offering unmetered access to consumers subject to monthly subscription payments or other conditions, the ISPs themselves were being charged by BT for use of the lines at a metered rate, giving them the burden of the financial risk since they could not know how long their customers would spend on-line.