Small ISPs excluded from Friaco

BT is casting smaller ISPs out in the cold as the telecom giant finally launches its flat-rate internet access call origination (Friaco) product for companies with 50,000 users or more.

BT Openworld, the company's internet division, is offering ISPs and VISPs(Virtual Internet Service Providers) of a certain size SurfPort24, which gives unmetered access and will provide value added services. However Catherine Hawley, senior vice president at BT Openworld, says that the product which is due to launch in April, is only suitable for ISPs and VISPs with users numbering over a certain threshold. She says: "It is suitable for larger ones like Tesco which has over 400,000 user to 500,000 users - any lower than wouldn't want to use Friaco." She adds: "I would recommend for [smaller ISPs] to stick to pay as you go because they would struggle to make money out of it, we wouldn't want to fool them." BT Openworld currently counts a throng of corporates among its client base including Tesco, WHSmith and Boots. However Neil Barker, managing director at Chocolate Internet says that BT is too easily dismissive of what smaller ISPs do or do not want. He says: "At the end of the day it is BT which rules because it controls the network and it would probably like if ISPs like us packed up and went away." While he admits that at present the company does use a pay-as-you-go system which nets them a small amount of money, he says that they would be very interested in the idea of the Friaco product - if BT catered to his size of company.