Virgin.net has announced that it will be offering unmetered internet access for £15 a month from October. But at that price Virgin.net could be pricing itself out of the market, as there are unmetered access packages available for considerably less.
Firm offers 24seven at £15, but is it too pricey?
Charity Itsgoodtogive.co.uk is doing an unmetered service for just £9.99. Despite the fact that the package offered by Itsgoodtogive.co.uk undercuts some of the UK’s more established ISPs, the company insists it is making a profit, as we reported in June when the service launched.
According to telco watchdog Oftel's figures, the average price of unmetered internet access in the UK is £18 per month. Virgin.net’s 24seven service will be £3 cheaper than this, on a par with AOL’s Flat Rate and BT’s Internet Anytime packages.
Graham Knox, ISP director at Virgin.net, believes that 24seven will offer customers just as much, if not more than AOL’s Flat Rate and BT’s Internet Anytime, and emphasised that it is providing “a very good product”. When asked if it was feasible that Virgin.net could offer even lower prices, Knox pointed out that 24seven was “about content as well as connectivity”.
It is likely that the cost of the portal run by Virgin.net means the firm would have difficulty in justifying prices that were substantially lower than its competitors. Peter Tuomey, head of access products at Virgin.net, said that 24seven is the “first in a line of new products” that Virgin.net plans on launching in the near future.