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No monthly charge?
Posted by: eusty on Wednesday, July 28, 2004 - 02:53 PM
ISP's [General]

Lixxus, a new ISP to many, has launched a broadband service this week that only charges users for the bandwidth they use, and no monthly subscription. The company charges by the amount of data downloaded, a tariff structure that should benefit light or irregular users who only download 1GB of data or less a month.

Users are charged 5p  per megabyte for the first 300MB and the above this £15 point, they are charged 0.225p  for each additional megabyte, up to a maximum bill of £25 per month. These prices don't include VAT so the maximum charge would be £29.00 per month.
While this isn't cheap by today's standards, very light users would be the ones to benefit.
For instance someone downloading 1GB a month would be billed £17.62 for the first 300MB and £1.85 for the next 700MB, equal to around £19.50 a month.
Lixxus recognise that this will fit into a niche within the broadband market.

We're offering entry level customers a value for money product, and one where they can still do a lot online for £29 a month,"
"We're not saying we are the cheapest in town, but we are giving people the option to not use their connection much in one month, and download a lot in the next month and pay more."

Joe Kelly, managing director of Lixxus

PlusNet and Eclipse have announced products which take advantage of BT's itemised billing, but Lixxus have beaten them out of the trap.

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