Free ISPs in Trouble in the UK

UK.internet.com reports that AltaVista is the latest ISP to rescind its free access offer to British subscribers. Meanwhile, cable giant NTL is facing a rising chorus of complaints from those who have applied for, but not received, its free Internet access service.

by Alex Goldman
Associate Editor, ISP-Planet
[June 16, 2000]

According to uk.internet.com, AltaVista UK announced in March that it would give UK consumers unlimited access to the web for a setup fee of £30 ($45.90) and a yearly £10 ($15.30) subscription charge.

The UK portal was originally created by Digital Equipment corporation, itself recently taken over by Compaq.

AltaVista has announced that it now intends to charge £60 per year for Internet service.

AltaVista insists new research indicates that customers would rather pay more for better service quality than be swamped with promotional emails — income from which would have been essential under the old business model.

uk.internet.com said that some sources thought that a recent regulatory ruling on how BT, the incumbent, must price circuit access, has changed the costs of service provision in the UK.

AltaVista says that if final circuit prices are lower than expected, savings will be passed on to cosumers.

NTL won't compensate angry Internet customers
In related news, uk.internet.com also reported that cable provider NTL has angered customers, many of whom are still waiting to receive software that will enable them to log on to the Internet.

The ntlworld service, launched in April, offers unmetered Internet access included in the price of phone rental. Non-NTL customers signing up to ntlworld must buy a line adaptor for £10 and spend £10 a month on non-Iinternet calls.

However, many customers are still waiting for the registration software to arrive. Existing NTL customers have also been irked that non-NTL customers have already received software.

An NTL spokeswoman told uk.internet.com, "We are the only operator offering a free service and don't see why we should compensate people who will be getting a free service."

Other unmetered services that have run into congestion problems have offered refunds. Liberty Surf and Telewest both offered a free month's service for frustrated customers.

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