27 Oct 1999
UK Internet Service Provider (ISP) Callnet claims it will provide consumers with free Internet access next month thanks to a deal with BT.
Under the terms of the agreement, calls made through Callnet 145 will generate the company money from BT, but further details were not disclosed.
This is the first time, however, that voice calls have subsidised free Internet access in the UK.
Consumers signing up to the Callnet service will be provided with an 0800 number to enable them to connect to the Internet. There will be no subscription fees, one off setup costs, minimum call requirements or contracts involved.
Callnet claims that consumers will also be able to save around 30 per cent on voice calls if they prefix the telephone number with 145. And it seems likely that customers will be attracted to the service because they will not have to leave the BT fold.
Consumers have been burnt before with similar free Internet access services such as Screaming.net because BT was slow in switching them over to their chosen alternative service. There has also been a lot of confusion over billing.
But BT is now under a Provisional Order from industry watchdog, Oftel, to address the situation.
However, analysts are wary about whether Callnet will be able to sustain such a business model if consumers log on to the Internet 24 hours a day. Callnet, on the other hand, said it had done its research and based the model on a typical user profile and their daily voice call usage.
Callnet is also confident that it has the support and technology in place to support UK consumers, who are likely to swarm to the service.
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