OPTA sets tariffs for the provision of FRIACO services: Decision on unmetered Internet access

The OPTA Commission has set provisional tariffs for KPN to provide Internet services for a flat tariff to WorldCom. The reason for this lies in a dispute between KPN and WorldCom.

In November OPTA handed down a ruling in relation to the provision of FRIACO (Flat Tariff Internet Access Call Origination or, put another way, Internet access for a flat tariff) services, which stipulated that KPN was required to present a proposal to WorldCom quoting a tariff for the latter to purchase capacity from KPN.

Since WorldCom purchases bulk capacity and does not need to pay for each metered unit, it is now a simple matter for it to offer consumers different types of Internet access, for example, unmetered. In this respect, KPN will route Internet traffic to the WorldCom network via its own exchange using a separate 06760 number.

Setting FRIACO tariffs will bring unmetered Internet access closer, also to those people who do not have ADSL. This is not only good for consumers but also for the overall use of the Internet in the Netherlands. After all, until now the Netherlands has been lagging far behind other European countries with regard to the prices paid for the use of narrowband Internet access, according to the OECD. However, the tariffs which have been decided on now are still 20% higher than those in the United Kingdom, but will be reviewed on 1 July 2001 in the light of new proposals to be presented by KPN.