AOL UK, which initially launched AOL FLAT RATE to existing members on September 19th, is expanding to new members thanks to an aggressive buildout of FRIACO capacity by the Company's multiple network providers.
The FRIACO tariff, created by economists commissioned by AOL UK in 1999 and mandated by the UK telecommunications regulator Oftel in May 2000, allows Internet Service Providers to develop technically robust and economically sustainable flat-rate access networks.
Prior to the introduction of FRIACO, ISPs wishing to offer flat-rate pricing were faced with three options.
We believe that FRIACO will have a significant market for at least five years, and that it will not delay, but rather promote, the spread of broadband, by effectively building up and preparing a user base ready to take broadband services.
The report concludes that FRIACO is good news for ISPs as it provides larger and more manageable revenue streams by turning active end-users into customers with subscriptions.
With the aid of data-rich forecasts, it indicates the likely effects of FRIACO models on Internet usage, and provides a series of recommendations for ISPs, OLOs and incumbent operators.
Oftel has also required BT to take steps to ensure that its network will be able to meet all reasonable demand for ST FRIACO
, without limitation, from February 2003.
(Flat Rate Internet Access Call Origination) results from an application by MCI Worldcom to the UK telecoms regulator, Oftel, late last year.
com the companies claim that BT's FRIACO Hybrid product, introduced on 3 August, does not go far enough in offering an unmetered service.
In response, a BT spokesman said that its FRIACO offer was fully compliant with Oftel requirements but that the company was continuing to discuss the matter with other operators.