AOL offer fuels ISP war

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AOL last night stoked up the war between internet service providers, announcing that unlimited use of the web and free customer support would be available for £15 a month.
 
AOL last night stoked up the war between internet service providers, announcing that unlimited use of the web and free customer support would be available for £15 a month.
 
The company, which held back when rivals rushed in, said its decision followed British Telecom’s agreement to offer flat-rate tariffs to ISPs after intervention by industry regulator Oftel.
 
Internet analysts predict AOL’s offer will be successful, despite the poor record of unmetered schemes
 
Freeserve offers two unmetered deals; one, in conjunction with BT, offers off-peak only access for £5.99; the other gives free access, but only if users sign up to Energis and clock up £9.99 worth of “voice” calls.
 
One analyst said: “There have been so many scares with poor unmetered access that people will take comfort in being with AOL as it’s associated with quality customer service and good access.”
 
Matt Peacock, director of corporate communications at AOL UK, said the rise in unmetered access could help fuel an e-commerce boom. Internet users in Britain, he claimed, were reluctant to log on as metered access costs up to 4p-a-minute during peak hours. “75% of people in this country are not online and one of the reasons is they are afraid of the phone bill,” he said. “The choice is now down to the consumer, not to BT.”