UKNM: Fixed rate monthly connect charge model

[Ray Taylor]

Just to clarify a point I made some while back (since it has come up again

in various threads), the whole point about fixed rate connect charges is

that it is a model that should allow users to make off-peak local calls

(including internet connection) without additional charge. �10-�15 per month

seems a likely initial price for such a service and cable companies the

obvious suppliers, though there is no reason why you could not provide the

same service via 0800, subject to being able to reconcile BT's connection

charges. This will in effect allow any company, telco or otherwise, to offer

such a service if they can manage the capacity.


It goes without saying that many users will connect for hours at a time so

capacity is obviously an issue and one that will help to differentiate the

good services from the bad.


But it won't be long now before you will be able to plug directly into IP

services via a cable modem at each house/office. It will make sense for the

suppliers to offer fixed connection charges, including local/off-peak calls,

and sell value-add services such as trunk calls (via a choice of supplier)

and content (TV, VOD, radio, interactive stuff).


Advertising is more likely to support content than delivery. Who would want

to buy advertising that is a "compulsory" element of a free-access deal? And

the development of interactive advertising techniques is likely to produce

such a high return that crude methods of slotting ads in where they are not

wanted are more than ever likely to lose their appeal.


Ray Taylor

NMC/Adplan - the interactive media agency

0181 639 0015

taylornmcadplan [dot] com

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