Oftel gives BT 'pay-as-you-surf' the OK

The UK telecoms watchdog, Oftel, has confirmed it will not stop the launch of BT's Click Internet service, despite concerns surrounding its effect on competition in the Internet Service Provider (ISP) market.

An Oftel spokesman acknowledged concerns over the 'pay-as-you-surf' service which have been raised by industry bodies such as the Internet Service Providers Association (ISPA). However, it said although it will not take action now, it will continue investigations into BT's alleged abuse of its monopoly position.

ISPA says it is possible that funds could be diverted into Click from BT's full ISP service, BT Internet, in return for Click users being targeted by advertisements. Another concern is that the service will not require customers to register their names, which may make it easier for anonymous users to circulate junk email.

BT Click differs from other ISP accounts in that it has no registration, connection charges or monthly fee. The cost is set at local call rate plus 1p per minute, with users billed only for the time spent online. Extra services will be kept to a minimum, with no full email accounts or Web space on offer. However, BT said a "basic helpdesk will be available".

BT Click is currently undergoing trials and is scheduled for launch this month.