Lycos reconsiders free message service

Internet portal Lycos.co.uk said it may be forced to withdraw its free text messaging service following plans by the UK mobile phone operators to charge each other a fee for every text message sent to a rival network.

Internet portal Lycos.co.uk said it may be forced to withdraw its free text messaging service following plans by the UK mobile phone operators to charge each other a fee for every text message sent to a rival network.

All UK mobile operators plan to introduce an interconnection charge, expected to be 3p per message, for each cross-network text message from next month.

According to the operators, the charges will cancel each other out as messages are sent between networks, ensuring that the extra costs will not be passed on to customers.

But Alex Kovach, managing director of Lycos in the UK and Ireland, warned that the charge will "hugely affect" customer pricing.

Currently, the company allows users to send an unlimited number of text messages from a PC to a UK mobile phone free of charge, but said it may now be forced to review the service.

"SMS is proving to be a huge success and we are not saying we will definitely stop the free offering. But we will need to look at the situation. I am amazed by the charge. I think the consumer will certainly lose out," he said.