LineOne closes unmetered web service

UK internet service provider (ISP) LineOne is to withdraw its unmetered access service, claiming it is no longer financially viable. The service will be shut down on 5 September, and replaced with a metered offering.

In a 'Dear John' letter to customers, the company blamed "substantial changes in the telecoms industry", which it said had "altered the fundamental economics of 0800 services".

The service was launched nine months ago and required subscribers to set up an account with start-up telecoms firm Quip and spend at least £5 a month on voice calls to qualify for free 24-hour web access.

The revenue model works if web usage is moderate and customers spend a fair amount of time on the telephone, making and paying for voice calls.

However, according to LineOne, a small but significant number of users kept their computers connected to the internet all the time.

To thwart them, LineOne - like other ISPs - had set a maximum connection time and a short 'time-out' before users could reconnect. But these users then installed programs on their PCs that automatically reconnected them as soon as the time-out period was over.

As LineOne bows out of the free web access market, other companies are diving in. ISP ic24, run by The Mirror Group of newspapers, recently announced an extension of its unmetered access hours. Users will now be able to connect between 8pm and midnight on weekday evenings as well as from 9am to 5pm at weekends.

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