By Kevin Murphy
Online-Direct Ltd, a UK start-up is offering PCs at a knock-down rate to people who subscribe to its free internet service. Tom Anderson, general manager at the firm, says the model is based on similar schemes in France where firms like Kertel SA have mimicked the ‘free’ PC model pioneered by FreePC.com in the US.
The PCs in question are low-spec 333 MMX desktops with 4.3Gb drives, 32Mb RAM, and the usual features such as CD-ROM drive and speakers. The only software provided is Windows 95 and dialup software. The machines usually retail for just under 450 pounds ($700), but Online-Direct sells them for 299 pounds ($465). The only proviso is that the user must dial into its ISP at least ten hours per month. Smart users will stick to weekend cheap rate dialup at a penny per minute, meaning 6 pounds ($9.35) is the minimum monthly outlay, or 72 pounds per year ($112). The contract extends for a minimum of one year.
Online’s other package offers users the chance to get 10% to 20% of their dialup costs paid back to them at intervals. Anderson says there are around 80,000 subscribers to this service, which is not available to users of the subsidized PC offer. Both services work on the Freeserve model, where an ISP takes a cut of call revenues by partnering with the telco provider of the terminating network. Online-Direct uses British Telecommunications Plc as its partner.
