The development of the unmetered internet access market in the UK may have been given a boost today, after a proposal from Oftel seeks to change the way BT charges other operators that wish to provide the service.
The telecommunications watchdog has proposed that BT should charge operators that provide unmetered access in the same way that it charges for metered access, that is where users pay for the phone call by the minute. Currently, BT allows operators of metered internet access to pay in arrears, whilst unmetered services are forced to pay up front.
The reduced financial burden on operators – and the opportunities for new operators to enter the market – that may result from any such changes could lead to falling prices for customers in the unmetered ISP market. The costs of an unmetered service currently range from around £10 per month to £15 per month.
Around 40% of the UK internet population, more than four million homes, currently use an unmetered service, whilst most of the remainder pay by the minute.
Oftel described the proposals as “a more attractive wholesale product for suppliers who will find it easier to plan, which could lead to more competition, which in turn would push prices down and boost the retail market.”
