NEWS
Wi-fi network operator The Cloud announced a new set of pricing plans on Tuesday which it says will make mobile internet access "affordable to everyone".
The centrepiece is an "all-you-can-eat" monthly rate of £11.99 on a yearly contract. Also available is a weekly subscription for £11.99, as well as a new wholesale rate for resellers and existing partners of The Cloud.
The Cloud believes that the new rates, dubbed UltraWiFi, will stimulate "more uptake among people committing for long-term usage", according to chief operating officer Sanjeev Sarin.
Sarin told silicon.com sister site ZDNet UK the feedback received from test marketing pilots had shown customers were loath to stick with a service that charged exorbitant fees through vouchers or paying by the minute.
Some wi-fi operators, such as BT Openzone, currently charge £6 for an hour's access.
Sarin also suggested the new tariffs would stimulate VoIP demand among businesses. This is due to the dramatic difference in cost between internet telephony and GSM usage, as well as the development of wi-fi-enabled VoIP handsets.
Sarin said: "A lot of companies are looking at mechanisms of lowering their costs, and this gives it to them."
Analysts responded cautiously to the news. Telecoms analyst Dean Bubley said: "I think it's going to depend on the individual's profile of usage.
"If you have a working routine where you visit a certain coffee house every morning, and you have a couple of client locations where you have The Cloud hotspots, it'll work perfectly."
Bubley believes the new development is a step towards sensible wi-fi pricing but would only "broaden the audience a bit". "It's interesting, it's got potential but I'm not sure it'll suit everybody," he said.
David Meyer writes for ZDNet UK
Comments
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1. anonymous
I guess it had to be The Cloud to do this, a traditional telco like Openzone (Open?) and T-mobile are too tightly bound to the tired old pay-by-the clock business model. However, why wait, I reckon anyone can sign up for a similar priced deal now with boingo via their US website now and exploit boingo's roaming agreements in Europe.
2. Don Tregartha
The all you can eat model is going to be the future, business users need to know what their monthly costs are and will use the service whatever the time slice. The only problems Telcos will have is with the domestic chat all night/surf all morning types who will trough away at the bandwidth. But they sort that out by slapping a huge contention ratio on them.