FOCUS-AOL muscles into UK's free Net access market
(Adds comments from news conference) By Kirstin Ridley
LONDON, Aug 24 (Reuters) - AOL Europe, the online service giant, fired up its first subscription-free Internet access offering in Britain on Tuesday, setting its sights on market leader Freeserve Plc <FRE.L>.
To the beat of techno in a trendy East End London gallery, the joint venture between America Online <AOL.N> and Germany's Bertelsmann <BTGGga.F> launched Netscape Online, a brand aimed at young males who like to find their own way around the Net.
"Beware part-time Internet providers...the N is nigh," proclaimed AOL as part of a national marketing campaign with full-page advertisements in leading newspapers.
Netscape Online is taking no chances. It's going live with an online competition to win a Rover <BMWG.F> MGF sports car every week for the first month.
It will be AOL Europe's fourth brand, and Chief Executive Andreas Schmidt told a news conference: "Now we have our new baby...This is the next step in our multi-brand strategy and provides the best service available to this market."
It says market research shows there is a niche for the so- called DIY, cost-conscious Internet user. It says its own subscription-based AOL service, which costs 9.99 pounds ($15.95) per month and offers free customer support and a complete package for Internet beginners, will not be one of the casualties.
The group is hoping to make up ground lost since Freeserve began offering subscription-free Internet access last year.
Launched by electrical retailer Dixons <DXNS.L>, it won over one million registered users within four months and promptly leapfrogged AOL as Britain's biggest Internet service provider.
AOL, which leads the booming U.S. market with 20 million subscribers, says it is poised to reclaim its seat with this campaign's hip, irreverent tone, that is backed by a retail deal with Britain's Kingfisher Plc <KGF.L>.
From September 1, Netscape Online software will be available free through nearly 800 of Kingfisher's Woolworth high street stores.
The service, which AOL may also extend to other European countries, includes unlimited e-mail addresses and nine content channels including chat rooms, news from ft.com, content from men's magazine Maxim, games and sports information.
As with other subscription-free Internet providers, Netscape Online customers will pay for phone charges at local rates while they are online. And if they need technical support, a call for help will cost a premium 50 pence (80 cents) per minute. ($1=.6264 Pound)
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