AltaVista MD Quits Over Free Internet Access Fiasco

Andy Mitchell, UK managing director of AltaVista, has resigned, following last week’s decision to put the company’s flat-rate internet access service on hold (see AltaVista Blames BT For Stalling On Free Internet Service).

AltaVista was among the first companies to offer unmetered access to the internet in this country, and Mitchell was responsible for the service’s launch. However, at present, companies offering these services must shoulder the financial burden of paying BT for all calls made by customers.

This situation will continue until the access model called Flat Rate Internet Access Call Origination (FRIACO) is offered to BT’s rival telcoms companies. Many believe that before then, all business plans involving unmetered access are fatally flawed. Despite attracting 270,000 potential customers, AltaVista is not thought to have ever actually launched its service, as doing so would have cost thousands of pounds.

It is now thought that AltaVista has abandoned its plans for a UK unmetered access service altogether. Stephanie Himoff, who was promoted to managing director following Mitchell’s resignation yesterday, said “From today, AltaVista is focussing on our core business: Internet search.”

AltaVista: 0870 876 7953