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Technology Stocks : Compaq
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To: hlpinout who wrote (48532)2/17/1999 7:41:00 AM
From: rupert1  Read Replies (1) of 97611
 
Hi Hio: Thanks for your continuing efforts.

Do you have access to the British "Financial Times" It often has good articles on COMPAQ.

Yesterday it had an article on the sudden development of the free internet access and free hardware phenomenon. I reported to this thread a few months ago about Dixons, the largest UK retailer of computers - that they were offering free internet access. In three months since then they have signed up 1 million customers and will reach break even in April rather than November. Revenues are from advertisers and commissions. It has started a bit of a panic among competitors and now there are about 6 other players offering free internet access including Line One, which is a well-established service. Even AOL is getting worried and is reviewing its price to compete with the free services. AOL and others are arguing that its content - chat lines, news etc - is worth a fee. (AOL could never argue that its speed of connection is competitive or the availabilty of access - it is one of the worst in the UK).

Dixons computer sales have rocketed and the explosion of the internet in the UK has been a big boost to hardware sales.

It is true that the UK is facing a slowdown of zero growth for a couple of quarters (even negative growth) but this is expected to be temporary. In any case the slowdown in growth will be offset in the explosion of demand for computers. The article argued that free access to the internet, free software and free hardware will bring about the acceptance of the internet into all areas of life far faster than anyone has so far predicted. The UK is ahead of the rest of Europe in YK2 compliance and use of the internet. Europe will follow.
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