CallNet has scrapped its unmetered internet service, saying it can no longer support the economics of providing free access.

The ISP's nine-month old CallNet0800 service will be shut down on 5 September and replaced with a metered service, called CallNet1p, which charges subscribers 1p a minute for off-peak access and 2p a minute at peak times.

CallNet is the latest in a line of unmetered internet casualties. Last month LineOne said it was terminating its unmetered service with telco Quip and replacing it with a monthly subscription service based on BT's Surftime tariff. Virgin and AltaVista have delayed rollout of their unmetered services.

CallNet suspended registration to the 0800 service at the beginning of June. It confirmed to vnunet.com at the end of June that it would not reopen registration, but would instead launch "several new services later this year", including a low-cost subscription-based service providing free internet access during evenings and weekends.

However, the ISP told subscribers today that it would scrap the 0800 service altogether, citing "industry changes". It said the rapid development of the "internet culture in the UK requires an innovative response from responsible service providers".

The new service will provide internet access at 1p a minute at off-peak times of 6pm to 8am Monday to Friday and all weekends, with a rate of 2p a minute at other times. A £9.99 registration fee will normally apply to new users. However, this registration fee will be waived for existing CallNet0800 customers who convert and register online before 5 September.

The first 100 existing 0800 customers to register for Callnet1p will receive a £5 credit. To register, go to http://www.callnet0800.com/signupuk/