(WEB HOST INDUSTRY REVIEW) — UK-based web hosting provider UK2 (www.uk2.net) announced on Thursday that it had introduced a new shared web hosting package for which the company will charge a monthly rate of 99p (which amounts to about $1.50 in US dollars).
In its press release, the company calls the plan “one of the cheapest and most competitive packages on the market.” Obviously, there isn’t a lot of wiggle room between 99p and free hosting, so even a cheaper package would only cost a very small increment less.
According to the comparison chart on the UK2 website, the “Starter” plan offers 500MB of storage and 1GB of data transfer for a single website. The press release says it also includes cPanel and 24/7 support.
The company says the plan is “perfect for the entry level user,” though it expects more experienced webmasters to show interest in the plan, based on the price.
UK2 no doubt hopes customers of the Starter plan either grow into bigger customers or buy other service from the company, as there isn’t much margin for profit in the 99p monthly fee, especially if the customer were to actually engage with tech support.
“We can never sit on our laurels in this industry,” says UK2 commercial director Patrick McCarthy, quoted in the press release. “You have to pay attention to what your competitors are doing and what your customers are looking for from you as a provider. If we constantly improve our services and reduce the costs, then our customers, current and future, will feel they are getting excellent value for money.”
McCarthy says there is a large number of web users out there who have yet to “take the plunge” and create a website. The company is interested in acquiring a piece of that business.
Undercutting on price is not an unfamiliar tactic for UK2. The parent company UK2 Group has seen a great deal of success in the dedicated server market with its 100TB.com offering (www.100tb.com), offering practically-unlimited bandwidth to dedicated server customers.
About Liam Eagle
Liam Eagle has worked as a contributor to the Web Host Industry Review since its inception in 2000, and as editor since 2003. He has been editor of the WHIR's print magazine since its launch. His daily involvement in the gathering and reporting of Web hosting news and his regular interaction with Web hosting leaders gives him an uncommonly broad appreciation of the issues and tends facing the business. Through his WHIR blog, Liam spots Web hosting trends and offers opinions on the industry-wide impacts of major developments and the motivation behind big announcements. Follow him on Twitter @liameagle
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