World Online reviews unmetered deals

World Online has warned customers that it may suspend its unmetered internet service, despite repeated promises that it would survive the market fallout.

In an email to customers and seen by vnunet.com, World Online said it has been forced to review its services and pricing, because BT is still not offering it truly flat-rate internet access, via the flat-rate internet access origination (Friaco) system.

"World Online is committed to delivering unmetered internet access to its customers. In light of the delays in the availability of Friaco, World Online is currently having to review its products and pricing," the company's email stated.

According to telecoms watchdog Oftel, BT's current terms mean that ISPs must either build their own networks to carry traffic from a BT switch to the local exchange or pay a metered charge of a "fraction of a pence per minute" to BT for carrying that traffic.

However, World Online said Friaco is still not commercially viable for ISPs. "In addition, there is no definite date as to when Friaco will be commercially available," World Online said.

"If any changes are made in the near future, they will be reviewed once a Friaco product is available to us. In the event of there being any changes, we will be giving all our customers at least 21 days notice."

World Online will review both its unmetered packages, Freedom24 and FreedomLite.

Having launched flat-rate internet access amid a blaze of publicity, many ISPs have found supplying unmetered access a tough proposition. Some have failed, others have either imposed strict limits on customer numbers, creating huge backlogs of would-be customers. Some have suspended new registrations entirely, or in one famous case failed to launch altogether despite repeated public assurances to the contrary.

Meanwhile, the World Online board has accepted a £3.6bn all-share takeover bid from Tiscali, an Italian internet operator. The deal values the company at under half the level of its March flotation.