The Cloud slashes Wi-Fi prices

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 ZDNet UK that 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.

"A lot of companies are looking at mechanisms of lowering their costs, and this gives it to them," said Sarin.

Analysts responded cautiously to the news. "I think it’s going to depend on the individual’s profile of usage," telecoms analyst Dean Bubley told ZDNet UK.

"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," he said.

Bubley believes the new development is a step towards sensible Wi-Fi pricing, but would only "broaden the audience a bit".