Competitive issues are not the only source of controversy surrounding British Telecom's Click Internet access service. Internet watchdog groups are also concerned that the service will make it easier anonymously to distribute paedophile and pornographic material over the Internet.
Mr Laurence Blackall, chairman of the British Internet Service Providers Association, said: "There is a serious risk that because the service is uncontrolled it will unleash a torrent of paedophilia and pornography on to the Internet. It is launching a service it cannot control.
Mr Blackall's concerns are shared by Mr David Kerr, chief executive of the self-regulatory body of British ISPs, the Internet Watch Foundation (IWF). He said the new service was of concern to both the IWF and the police. The Click service does not set up accounts and only requires access to a phone.
A BT spokesman said if necessary the company will be able to identify callers via a calling line identity service.
However Mr Kerr said this is insufficient, as Click users could use friends' telephones, sockets in hotels, or even data sockets on public phones.