BT changes policy and launches free ISP

BT's flat-rate Internet service, BT Click+ became the latest Internet service provider (ISP) to stop charging for access today.

The service - renamed BTClickFree - is joined by LineOne, a subsidiary partly owned by the telco, which has also stopped charging for subscription.

Some observers are claiming the news marks a complete change of policy for the British telecoms giant. The launch of free access services from electronics retailer Dixons and supermarket chain Tesco late last year provoked an angry reaction from BT. The telco claimed its network would be compromised by users flocking to get online.

Clive Longbottom, strategy consultant at CSL, told Silicon.com: "This is an example of sheer ineptitude on the part of BT - they clearly don't know what they're up to."

Nicholas Lansman, secretary general of the Internet Service Providers Association, said he was surprised by the move and wanted to know how BT though they could fund the service.

BT's complaints against Dixons and Tesco have led to telecoms regulator Oftel committing itself to a full scale enquiry into the growing number of free ISP services and their effect on the market. BT's own service is now likely to come under Oftel's scrutiny. A spokesman for Oftel confirmed the BT-provoked investigations will still go ahead.

A BT spokesman said the launch of BTClickFree is separate to the telco's complaints to Oftel and denied the existence of inconsistencies in company policy. He was unable to comment on further issues.