Gees,you guys ain't checking the news wire--this sounds like a Big Deal--is it?
Business Headlines
Monday November 16 12:14 AM ET
Compaq Unites Industry For High-Speed Internet Push
By Eric Auchard
NEW YORK (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news) Monday will unveil the first consumer personal
computers with pre-installed high-speed Internet access equipment, part of a concerted bid with key partners to extend the powers
of the Internet and demand for its own PCs among U.S. consumers.
In addition, the world's leading maker of personal computers will reveal plans to encourage rival U.S. cable, phone, and satellite
companies to work together to accelerate development of the mass market for high-speed Internet use.
Compaq officials will demonstrate the new products at the opening day of Comdex, the largest annual U.S. computer industry
trade show, which gets underway Monday.
In contrast to phone ''dial-up'' Internet access services that the vast majority of consumers use to connect to the Internet, these
new types of services allow consumers to remain constantly connected to the Internet at speeds that give computer users
near-instantaneous access to the Web.
By finding common ground among the rival industries, Compaq is seeking to make it easier for consumers nationwide to become
equipped, sign-up for service, and start using any of the three available types of high-speed Internet services.
''This is going to be a great accelerator toward making the widest variety of high-speed Internet services available from leading
cable, telecommunications and satellite companies,'' Compaq's consumer unit chief Rod Schrock said in an interview.
Compaq said it has established relationships with the two leading high-speed cable Internet programming services, Road Runner
and At+Home Corp., six of the largest U.S. local phone service operators and Hughes' DirecPC, a system for delivering
high-speed Internet access to PCs via satellite.
Participating phone companies include Ameritech, Bell Atlantic, BellSouth, GTE Corp. (NYSE:GTE - news), SBC
Communications Inc. (NYSE:SBC - news) and Sprint Corp. (NYSE:FON - news)
The only major local phone service providers missing from the list are U S West Inc. and MCI WorldCom, but Schrock hinted that
these companies will also enlist. ''You should imagine we are working with them as well,'' he said.
Together, the partners make up almost a who's who of top suppliers offering or planning ''broadband'' high-speed Internet services
to U.S. homes via either cable, phone or satellite.
The new effort, which Compaq calls its ''triple play,'' is the result of more than a year of behind-the-scenes jaw-boning with
leading communications industry players to help them agree on ground rules that can speed development of the market.
Compaq said it has formed joint marketing partnerships with the three industries to collaborate on education, simplified service
ordering, integrated registration processes, and efforts to ease installation of the new Internet systems.
There are roughly 23 million U.S. households with access to the Internet, but most now rely on slow, ''dial-up'' phone links.
Cable-modem service is available in up to 16 million U.S. cable TV households, but only 100,000 homes have signed up to date.
Phone companies have similar sign-up rates in areas where they offer a rival high-speed service that runs over existing copper
phone wires. DirecPC sign-ups are a fraction of the 4 million subscriber DirecTV, its sister satellite TV service.
For its own part, Compaq said it is planning to equip its PCs with internal modems or other hardware necessary to receive
high-speed Internet connections through any of the three alternative delivery systems.
Compaq said its new Presario 5100c PC series, with high- speed modem, a 400 megahertz K6-2 Intel-compatible computer chip
from Advanced Micro Devices Inc. (NYSE:AMD - news) and a 17-inch computer monitor, have prices starting at $1,599. That's
with a $100 rebate to buyers who sign up for Internet service.
In addition, the Houston-based PC maker will offer the 5600 series with a top-of-the-line Intel 450 megahertz Pentium II chip, with
systems starting at $2,793, including and a high-resolution digital flat-panel monitor priced at $899.
The new high-speed Internet-ready consumer PCs will be available nationwide, starting Monday, from more than 6,000 kiosks
Compaq has installed at major retail chains that allow customers to order PCs built to individual specifications.
Earlier Stories
Compaq To Sell PCs Directly To Businesses (November 11)
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