ISPreview - Cost of Unmetered

ISPreview take a detailed look at the cost of unmetered for ISPs

Cost of Unmetered
By Mark 'Killzat' Jackson : Aug 23rd - 2000 : Page 4 of 5

"So your monthly fee is best described as an estimate of how much (time) that ISP believes the number will be used per user"


So your monthly fee is best described as an estimate of how much (time) that ISP believes the number will be used per user. Don't forget you also have to buy networks on top of that and various other things with BT (another type of port). So when, for example, an ISP such as RedHotAnt finds itself being used a lot, invariably troubles arise.

Such ISPs rely on the fact that a great percentage of users will NOT use the net for more than an hour or two a day, something that demand has shot down. As you can see from this the cost to an ISP supporting any of the current systems is so high that they run dangerously close to bankruptcy. The only way out is to charge high monthly prices, so far 24-7Freecalls tag of £19.99 per month seems to be the best workable scale you can get for profit and service.

As we started off saying, the revised FRIACO is partly metered, so it's a cross between old unmetered FRIACO and the standard 0800/0808 accesses. The idea being that by charging some calls as metered and making that charge less, the ISP has a more variable cost pattern. The hope is that this cost pattern would lead to even cheaper access, although as we don't yet know the details it would be unwise to comment.

So it's going to get cheaper?

Fact is if you're a power user (somebody that doesn't want cut offs, requires ISDN 128 and uses the net a lot etc.) then ISPs are going to have to offer such people a separate alternative. Instead of sorting packages into Off-peak / 24-7 options, ISPs need to sort them into usage levels. That's is the ISPreview solution.

ISPreview suggests that under the forthcoming revised FRIACO system (signed off today), ISPs choosing to use it offer a three or four tier option, as follows:

Tier 1 (Basic Usage):-

  • A system the same as BTSurftime and other ISPs are already offering, where by the costs for an Internet call at anytime of the day is 1p or less. Such a service should be offered at a minimal price, if any cost at all (cost should be based on services with the package).

Tier 2 (Standard Off-Peak):-

  • Off-Peak calling option much like many ISPs already offer for weekday evenings and the whole of the weekend. A set subscription charge of around £7 > £10 per month would be a wise price bracket. Cut off times and connection limits variable.

Tier 3 (Standard 24/7):-

  • A base 24/7 unmetered option for a set monthly fee, the service should contain cut offs, possibly bandwidth limits and connection limits (no ISDN 128 etc.), all options variable like any other 24/7 provider currently operational. Price to be set according to revised FRIACO plan.

Tier 4 (Power User 24/7):-

  • The same 24/7 package as above, accept supporting at least ISDN 64Kbps (128 recommended) and with no cut offs or bandwidth limits for a set monthly fee. No ports should be blocked and this would be considered only on ISPs able to offer a near 1:1 connection ratio (or with already perfect service status). The package could be priced from anything upwards of £30 per month to no more than £60 (possibly require £60 for dual channel ISDN, option should be given if possible).

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