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Freeserve stops taking on flat rate customers

Unmetered access debacle continues

Freeserve is no longer accepting registrations for its unmetered service.

Many ISPs have questioned the logic of providing a flat rate model while BT maintains its per-minute rate for use of its networks.

Freeserve’s decision is the latest in a catalogue of headaches facing ISPs when offering flat rate access.

Back in August AltaVista abandoned plans for its unmetered service before it had even launched.

In July Breathe.com was obliged to disconnect its heaviest flat rate users.

Most recently World Online was forced to change its unmetered pricing structure because of the hefty costs of subsidising its flat rate user base.

At the end of last month Freeserve announced spiralling losses against a background of its continued support for unmetered access, which is costing the company around £2.50 per month per subscriber.

Freeserve is claiming more than a quarter of a million users for its flat rate service, with more than two million subscribers overall.


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