|
|
|
Red Handed March
2001
Investigation launched into free ISP RedHotAnt
as more toll-free services appear in the UK
Toll-free access in the UK is dead: long live toll-free
access.
That is the confusing message for Internet users
as the promised shake-up of British ISPs enters a new phase with
a return to the once familiar subscription service - but with a
difference. For a decade following the launch of Demon's 'tenner-a-month'
service, users expected to pay a relatively small fee for Internet
access as well as telephone call costs.
With the emergence of 'free' ISPs, however, the
subscription market was thrown into chaos. First of all, companies
believed that they could generate enough revenue by simply taking
a percentage of the phone costs that users rack up as they surf
online. Next, companies believed they could offer toll-free services
in return for a monthly or yearly subscription.
One such ISP, RedHotAnt, which charged users £130
for free Internet calls is now under investigation by the police
and trading standards following accusations that it was cashing
cheques when it knew its service was to fold. Kevin Wall, MD for
the company, has issued a statement on the company's web site that
'the authorities will find that we have acted in a moral fashion,'
but agrieved subscribers do not necessarily agree - particularly
as RedHotAnt had initially said that it would not pay refunds for
the withdrawal of the service.
|
Many companies launched on the promise of
free Internet access have hit hard times in Britain in recent
months, although others such as Freeserve and AOL have found
a renewed lease of life through subscription. Taking advantage
of BT's FRIACO (Flat Rate Internet Access Call Origination),
such companies guarantee standard operating costs.
Elsewhere, the BT monopoly on broadband access
looks likely to continue, as several companies (including
WorldCom and Telewest), have cut back on ADSL services.
|
Previous
stories
Broadband in the UK
Hasta la Vista Free AltaVista
Rip-Off Britain?
Relevant sites
RedHotAnt
Freeserve
AOL
|
|
