Campaigners describe BT unmetered services for education as 'too little for too much money' London, 10 November 1999For immediate releaseThe Campaign for Unmetered Telecommunications (CUT) expresses profound disappointment in the unmetered Internet accessservices proposed by BT in the recently released OFTEL consultation document 'Connecting public institutions - BT'sPublic Institutions Internet Caller Service' [1]. The proposed services can best be described as offering too little fortoo much money. In CUT's view, if implemented they will have a negligible impact on educational access to the Internetin the UK.BT has proposed unmetered access to the Internet for schools, public libraries and FE colleges via flat-rate annualprice plans for both telephone modem access and ISDN access. The simplest plan would provide telephone modem access tenhours a day weekdays from 8am to 6pm for £600pa plus VAT. Unmetered access 24 hours a day would cost £750pa plus VAT.Dual-band ISDN access would cost twice those amounts.Although these plans may appear to be significantly cheaper than present offerings, offering more than 50% off BT'smetered phone rates, they do not represent good value for money. BT's soon-to-be-released ADSL service, which provides24 hours a day unmetered access and a permanent connection without the problems of a dialup connection, is expected towholesale for £50 per month plus VAT, which is the same price as BT's proposed ten hour a day educational access serviceby telephone modem.BT has yet to offer an unmetered local call plan to the British public. Kingston Communications (Hull) plc [2] alreadydoes. It offers unlimited local calls for £183pa plus VAT for residential customers and £429pa plus VAT for businesscustomers. Kingston Communications also offers a special Internet access plan for schools for daytime access weekdaysfor £379pa plus VAT. As Kingston Communications is subject to the same regulatory restrictions as BT, CUT urges BT tooffer, as soon as possible, reasonable flat-rate local call plans to the British public.CUT will submit detailed comments on the consultation document to OFTEL by the due date of 2 December 1999. It will alsobe taking a number of other initiatives including an exploration of why OFTEL's regulatory price floors for BT servicesare so extraordinarily high. Although the intent of the OFTEL regulatory structure may be to protect BT's competitorsfrom predatory pricing by BT the practical effect appears to be a protection of BT's high profit margins and thelessening of competitive price pressures. These have the effect, in this case, of impairing the educational use of theInternet in the UK. CUT wishes to see common sense prevail.Notes for Editors:1. For the OFTEL consultation document seehttp://www.oftel.gov.uk/publications/1999/info_super/cpi1199.htm2. For details of Kingston Communications' services seehttp://www.kingston-comms.co.uk/Contact:Erol ZiyaPress Officer, Campaign for Unmetered Telecommunicationspress@unmetered.org.ukhttp://www.unmetered.org.uk/+44 207 681 2831