Virgin.net cuts unmetered Internet prices

While rival Internet Service Providers are raising the monthly subscription of their unmetered Internet access packages, Virgin.net is planning to cut the cost of its package.

Virgin.net is lowering the price of its unmetered Internet access service, called 24seven, from £15 to £13.49 per month from 22 April.

The move comes shortly after both AOL and BTopenworld announced they were raising their unmetered access prices. From the beginning of May, AOL's Flat Rate tariff and BTopenworld's Anytime package will both cost £15.99 per month.

A BTopenworld spokesman told ZDNet UK recently that £15.99 per month was a more realistic price, and would generate revenue to allow the ISP to invest in customer service and new products and services.

Virgin.net, however, believes that such price rises are unnecessary.

"I'm surprised by the recent announcements on price increases," said Peter Tuomey, sales and marketing director at Virgin.net, in a statement. "We are dropping our price by simply passing on cost savings that we have worked hard to deliver over the past few months. We will now share this benefit with our customers while at the same time continue to deliver the highest possible quality of service," Tuomey claimed.

Some observers have claimed that ISPs will raise the cost of their unmetered Internet access packages as a way of persuading customers to move to broadband.

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