Ref: 63/00
Date: 22 August 2000

Oftel has today confirmed its commitment to encouraging the development of unmetered internet access for consumers.

David Edmonds, Director General of Telecommunications said today:

"It is important that the industry provide consumers with a choice of products and tariffs to meet their needs.

"I recognise consumer concern today at the announcement by AltaVista that they are putting their unmetered internet access product on hold.

"It is disappointing to see AltaVista withdraw from the market. But competition is developing and other companies are already offering unmetered services to consumers.

"AltaVista chose to launch their product in March, in advance of wholesale products being available. It is up to AltaVista, as other commercial companies, to make sure that before they launch a product they have a sound business plan to support it.

"Oftel wants to see competition in unmetered internet access develop. On 26 May I issued a Direction requiring BT to provide an unmetered wholesale product to other operators. This allows other operators and ISPs to have access to BT’s local network on a wholesale basis to offer unmetered internet access.

"BT offered this product, known as FRIACO - Flat Rate Internet Access Call Origination from 1 June. Further industry discussion has resulted in a further refinement of the product known as FRIACO Hybrid. BT has offered FRIACO Hybrid since 3 August.

"I am confident that this provides a sound basis to promote competition in unmetered internet access and expect to see more companies providing unmetered Internet access packages in the coming months."

Notes to Editors

1. A copy of the Direction issued on 26 May and accompanying explanatory document can be found on Oftel’s website at www.oftel.gov.uk/competition/fria0500.htm.

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