AOL Stops Clock

Although unmetered access has failed repeatedly throughout Europe, AOL UK's cautious unmetered access rollout may succeed where more ambitious plans have failed.

by John Lewell
London, England, 19 September 2000

In what will be seen as the culmination of its "Stop the Clock" campaign, AOL UK has announced unmetered Internet access in a cautiously phased U.K. roll-out.

Remember your customers
First to get the new flat-fee service will be AOL's longest-standing customers who can switch their accounts immediately. Next will be other customers who joined AOL before Tuesday, when the announcement was made.

As for all those Internet aficionados who until now have ignored AOL in favor of highly-rated vanilla ISPs like Demon Internet or Madasafish, AOL says they will be able to join "as soon as possible" after existing members have had their fill.

The new service will cost all users £14.99 (US$21) per month, including Internet access and telephone connection charges.

Karen Thomson, managing director of AOL UK, called the new unmetered price plan "a watershed event for consumers," and said it would transform the interactive medium into a true mass-market phenomenon in the U.K.

"We promised more than a year ago that we would fight to 'Stop The Clock' of metered Internet telephone costs charged by the minute. We are now delighted to give our members what they want — genuine and sustainable flat-rate Internet access," said Thomson.

To avoid too much criticism from all those potential users who have been left out in the cold because they are not existing members, AOL UK is offering a free 24-hour trial followed by its "AOL Off-Peak, All the Time" service. This costs £9.99 (US$14) a month and one penny per minute, 24 hours a day.

"We will work to offer these new members AOL Flat Rate in the near future, as the U.K.'s telecommunications providers bring more and more flat-rate network capacity online in the coming weeks," said Thomson.

Regulation key to success of unmetered access
AOL UK has been a vigorous supporter of unmetered access in the U.K., running a "Stop the Clock" campaign to put pressure on BT to make its infrastructure available at reasonable cost. In May, U.K. regulator Oftel obliged BT to offer a flat-rate tariff to its competitors, paving the way for AOL's new service.

There must still be a question mark over AOL's ability to provide unmetered access to all-comers in the current market. AltaVista backed out when the figures did not stack up, and many other companies have quietly allowed start-dates to slip by without any starts.

Nonetheless, AOL's announcement is surely the most promising development so far in the U.K.'s longest-running Internet access saga.

Related articles
Replicating Failure in Europe Alex Goldman
[September 9, 2000] In the new economy, it's not just the successes that get copied. Failed business models also replicate. In this article, we cover the failure of unmetered access in France, and the launch of Spain's first unmetered ISP.

UK ISP Goes Down James Middleton
[August 29, 2000] Ezesurf head Matt Bryson claimed that the company closed due to a billing error which meant it had to pay £2,083,351.21 in one go.

UK Executive at AltaVista Admits Errors Jayson Matthews
[August 28, 2000] Andy Mitchell, Managing Director at AltaVista UK, says he mislead his US bosses about the status and readiness of AltaVista UK's Internet service.

UK Users Complain David Rae [August 18, 2000] UK.internet.com reports that customers of RedHotAnt.com's unmetered access offering subjected the ISP to a stream of abuse. One outraged user revealed to uk.internet.com that he had been unable to connect since June.

Free ISPs in Trouble in the UK Alex Goldman [June 16, 2000] 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.

—End