British Telecommunications Plc has finally conceded that the subscription-free internet access model is in the UK to stay, and announced it will offer revenue-sharing deals to internet service providers that opt to use the BTnet DialIP network. To qualify for the deal, ISPs must rent at least 50 BTnet DialIP access ports, which cost upwards of 200 pounds ($320) each per year. But the discounts given via the revenue-share could result in high-volume ISPs using DialIP for free.

BT will offer three tariffs, each with a special prefix to the numbers customers will use for dialup. These are 08457 for local call rate, 0870090 which adds a penny per minute onto the local call charge for premium services, and the toll-free 0800 prefix, which clearly indicates where BT thinks the UK ISP market is going. DialIP runs over BT’s 34mbps IP backbone, two 245mbps pipes to the States and several links to mainland Europe. There are currently 150 UK-based ISPs offering call-revenue subsidized internet access services.