To: rupert1 who wrote (63174 ) 6/16/1999 6:51:00 AM From: OverSold Read Replies (1) | Respond to of 97611
Compaq starts its own Internet service By Chris DeVoney, Sm@rt Reseller June 15, 1999 5:17 PM PT URL: zdnet.com While Compaq Computer Tuesday took the wraps off of several new Presario models, it simultaneously dropped the other shoe, becoming the fifth major computer marker to offer its own Internet service. With its new access service, dubbed Compaq.NET, Compaq (NYSE:CPQ) is looking to add value to its hardware through Internet services. Other vendors who have announced Internet access services prior to Compaq include Dell Computer Corp. (Nasdaq:DELL), IBM (NYSE:IBM), Micron Computer Inc. (NYSE:MU) and Gateway Inc. (NYSE:GTW). Compaq's Internet offering was intertwined with a variety of Presario announcements. Compaq announced new models, more models using DSL modems, and a new "Internet" keyboard, also to be offered on its small- to medium-business ProSignia line starting Wednesday, via which users can program specific URLs into their keys. Using the latter feature, customers can jump to AltaVista or a dealer's/reseller's site via a single keystroke. It's the Internet, stupid Compaq's move to jump into the Internet access fray results from customer demand, according to Ray Robidoux, Compaq's Vice-President of US Consumer Sales and Marketing. "Internet access is the number one reason people buy PCs in the consumer space, period. So it is absolutely a key focus point for us. "Our customers told us that would love to have one point of contact for all their problems," Robidoux continued. "If a customer has a question, it would sure be nice just to make one phone call and get my Internet as well as my hardware question answered--especially if I am a new user where I don't know which one of those is causing me the problem." The new service combines Internet access with a home page for users, plus some Compaq-unique features under its Extra Mile banner. One such feature is the ability of a machine to sense the model and equipment type a customer is using, thus enabling the automatic provision of matching updated programs and drivers. UUNET provides the backbone The Compaq.NET service uses MCI/Worldcom's UUNET as its communications backbone, offering over 700 local access numbers across the U.S., Canada, Puerto Rico, and the Virgin Islands. UUNET equipment will host most of the service's information although Compaq will house some information on its own servers. After signing with Compaq.NET, Presario owners will get 100 hours of free 56K dial-up service in the first month. Service options include a $9.95 plan for ten hours of service with addition hours at $.99, a $17.99 monthly unlimited use plan, and a prepaid, 12-month unlimited use plan for $143.88 ($11.99/month). Although Compaq can equip the Presario's with DSL modems, Compaq.NET's current DSL reach is limited. Compaq spokespeople were not ready to discuss the current locations or cost for DSL, but stated the company intended to expand service over time. In addition to its Compaq.NET service, Compaq is making available as options to Presario users both America Online and/or ZeroNet, an advertising-based free Internet service. Although company spokespersons said they did not see an application for Compaq.NET in the enterprise space, they did confirm the Internet service would be expanded to include small- through medium-business ProSignia lines in the future.