Free internet service may finally make an impact in the Australian market with the launch of GlobalFreeway, which claims to be the first free provider which has both the financial muscle and technological backing to sign up a significant number of subscribers.
GlobalFreeway is targeting 500,000 subscribers within six months, and will give away a free CD providing immediate unlimited cost-free access to anybody who calls. With third-ranked carrier AAPT having just dropped its local call rates to 15 Australian cents (9.6c) per call of unlimited duration, Australians will soon be able to get internet access at rock-bottom prices. Industry analysts are predicting free local calls could be introduced next year, which coupled with the GlobalFreeway offer would mean completely free internet access.
GlobalFreeway, like free access providers elsewhere, plans to make its money from advertising. It is backed by a Channel Island group of 24 internet-related investors, known as CI4NET, due to list on the Nasdaq exchange this week.
Managing director Rakesh Kumar says the investors have already supplied $7m to launch the service and support 50,000 subscribers from day one. Additional funding is available as required, he said. He said the key to making the service profitable, and what sets is apart from other similar ventures, is a confidential survey users have to fill in to enable the ISP to deliver advertising according to each individual customer profile. What makes this viable, he said, are two strategic alliances, one with Ericsson for key technologies, the other with international service provider Global One for bandwidth.
Ericsson’s patent-pending internet advertising (IAD) technology will enable GlobalFreeway to use the customer profile to target users according to their geographical location, demographics and specific preferences, without revealing the subscriber’s identity or personal details. The IAD will deliver small animated graphics that do not obscure the screen and which the subscriber can click on to view the advertiser’s offer, Kumar said.
Analysts say previous attempts at providing free internet access have failed because customer acquisition costs are prohibitive and free internet a model that simply burns up funding. They are not going to radically change the balance in this market, said one analyst, the economics are not as attractive here as in the UK, you need a subsidy from a telco to make it work.
