12.55, Monday 6 Mar 2000

Altavista UK are currently testing a no-subs/free-calls ISP for the UK. It seems a leak to the Sunday Times triggered an early press release (this page will be updated as more details are revealed). I didn't believe it was true before I read therelease. The local loop will be unbundled from BT by June 2001. ISPs based in the local exchange will have a marginal cost of zero per user online. I imagine Altavista UK believe that when the monopoly is ended, so many companies will go into the local market that the wholesale cost of calls will be near zero. They're just trying to build market share by subsidising the free access until that time. Next into this market: The Register points at Lycos.