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BT announces unmetered access package

BT announces new Internet access package in a week that has been dominated by the introductions of other low-cost services and as PM Tony Blair calls for access for all by 2005

Forced into action by a spate of free and free-ish Internet services, British Telecom (quote: BT) has entered the Internet price war with an unlimited access tariff.

Residential customers can, starting in June, enjoy unlimited evening and weekend access for £15.25 a month -- it will cost £29.95 if you include line rental with always-on access. The new package, announced on Wednesday, includes up to 80 minutes of inclusive voice calls.

Corporate customers will be charged £29.74 for the service.

The news comes amid mounting pressure on the telco to drop access prices in a week that has been dominated by low-cost Internet packages from AltaVista and cable company ntl, and calls by Prime Minister Tony Blair for access for all within five years. Angus Porter, managing director of BT, denies that the telco has been forced into swift action by political pressure. He also denies that BT makes significant profits from its Internet business. "We don't make a high profit from Internet access by any stretch of the imagination," he said.

The new package will have a minimum sign-up period of three months and is priced, curiously, at the same point as BT's ISDN service, Home Highway.

More to follow

Guy Kewney thinks BT is simply making excuses. Go to AnchorDesk UK for his opinion and the news comment.

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