Dell Launches Internet Access
Free of Charge in Europe
By KEVIN J. DELANEY
Staff Reporter of THE WALL STREET JOURNAL
Dell Computer Corp. launched the beginnings of a no-charge
pan-European Internet service, making it the first computer manufacturer
to join the fray of those offering free Internet access.
Software for DellNet, which was rolled out in the United Kingdom, is
available on the company's Web site and will come pre-installed on Dell's
consumer and small-business computers. That will likely differentiate
DellNet from the other free Internet services already up and running -- and
allow it to build an online customer base quickly.
Dell sold 9.8% of all personal computers and
PC servers shipped in Western Europe in the
first quarter of this year, placing it second only
to Compaq Computer Corp., according to International Data Corp.
In addition to the U.K., the company plans to start offering free Internet
access in Germany on June 21 and in France within the next month. It says
it will extend the service to other European countries this year.
DellNet follows U.K. retailer Kingfisher PLC in attempting to offer free
Internet service across Europe. Kingfisher and Group Arnault announced
plans for the first free pan-European Internet service in April, inspired by
more than 70 companies offering free access in the U.K.
However, in contrast to the U.K., where free services now dominate,
DellNet and others face tough challenges in France and Germany, where
phone giants like Deutsche Telekom AG, with its more than two million
T-Online users and France Telecom SA, have a strong grip on the Internet
market. Many users are wed to services that those companies supply, such
as online banking.
Nevertheless, free services have helped boost the number of Europeans
online and called into question the pay-for-service model. The free
services are financed by online advertising and, in some cases, subsidies
from the telecommunications operators who carry the traffic. Those
subsidies are based on a percentage of the local calling charges paid by
consumers dialing in.
DellNet runs on software from British Telecommunications PLC and its
partners over their European telecommunications networks. Excite Inc.'s
search engine and its other online services are integrated into the service.
Like other free Internet offerings, DellNet provides unlimited Internet
access and an e-mail account. Users pay only telephone connect charges
for time spent online.
In the U.S., Dell PCs come preloaded with Internet access software for
AT&T WorldNet, GTE Internetworking, and other services. While some
of those offerings -- which Dell calls "ConnectDirect" -- provide free
Internet access for a limited time, none offer it indefinitely as DellNet does. |
