At the announcement of its Wanadoo Internet access service last week, France Telecom Multimedia president Gerard Eymery said the operator expects to capture between 25% and 30% of the French market for on-line services by the end of the century. The resultant revenues would total between $140m and $160m in a market estimated to total about $500m. While France Telecom is offering a well-executed interface, with search engines for 1,000 French-language Web sites, of which it critiques 300, its tariffs are on the high end of the spectrum. It offers two monthly rates, of about $11 and $22 plus phone connect charges, for three and 15 hours of connection respectively. It also requires a one-time charge of nearly $40 as the sign-on fee. This compares with Internet access providers like Grolier Interactive’s Club Internet, which provides unlimited access for about $15 per month plus phone connect time. The operator’s policy vis-a-vis Wanadoo users that want to connect to Minitel services seems to put them at disadvantage. Undoubtedly aiming to preserve Minitel service providers’ legendary profit margins, the operator decided to levy the usual Minitel per-minute service charge on top of the local connect charge. The upshot is likely to be that few Wanadoo users will use their personal computers to connect to Minitel, which effectively consigns the pioneer on-line service to its old technology corner. The newly created France Telecom Interactive subsidiary announced that it has partnered with Apple Computer Inc, Compaq Computer Corp and BVRP Software SA. Apple and Compaq will market Wanadoo and buyers will get a month’s free subscription. BVRP, a leading French communications software company, will provide service installation and support for France Telecom Interactive. France Telecom Interactive also announced agreements with Netscape and Microsoft, whereby each will provide customized versions of their products for Wanadoo users. President Roger Courtois noted that France Telecom agencies will not be used to market Wanadoo, because it is a service open to competition. As a result, Wanadoo bills will show only the monthly subscription charge and Minitel use; the local phone bill will come from France Telecom. Courtois noted that France Telecom Interactive has a completely different mindset from America Online Inc, CompuServe Corp or Infogrames SA’s Infonie. They are more publishers of a certain amount of content and they offer the key to the Internet as a kind of incentive for their proprietary service. We’re open and non-proprietary.
