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To: Happy Cat who wrote (135309)	7/1/1999 11:37:00 PM
From: Capt	Respond to of 176387

Computer makers team with Internet services to offer virtually free PCs Major Internet services and computer makers are joining forces to offer a seemingly unbeatable deal to entice millions more people to join the Web revolution: free personal computers. The catch, however, is that the giveaways don't provide a $100-$300 monitor and demand a three-year commitment to the Internet services, which adds up to as much as $790. Despite the conditions, a flood of offers this month from America Online, Microsoft and Prodigy, three of the biggest names in Internet access, signify that PCs will soon be routinely given away just like cellular phones. "I think it will be nearly universal,'' said Roger Kay, an industry analyst with the International Data Corp. research firm. "It's like the old AT&T model, where they gave you the phone.'' Home computers which used to cost as much as a used car, are clearly hitting bargain basement levels. Smaller companies started giving away PCs last year, but the announcements on Wednesday by AOL and on Thursday by Prodigy show how plunging prices are fast making PCs into just a delivery mechanism for services and software. A steady drop in prices of parts, such as microprocessors and hard-disk drives, has helped make giveaways possible. AOL said it would give a $400 rebate on selected computers made by eMachines Inc. to anyone who subscribes to AOL's $21.95-a-month CompuServe Internet access for three years. The lowest-price eMachines computer is $399, in effect making it free, but the monitor is not included. The deal also applies to all computers bought at the Circuit City retail chain. The arrangement is expected to help AOL bolster the subscriber base of its CompuServe service, which is targeted to small businesses and home office users, but has only 2 million subscribers. AOL's flagship online service has 17 million subscribers. Prodigy announced a similar three-year deal for any brand of computer bought at Best Buy consumer electronics stores. Its Internet access costs $19.95 a month. Microsoft Corp. is offering a $400 rebate to customers who buy a personal computer at Staples Office supply stores. The one-week trial ends Saturday, but Microsoft officials said they are considering extending the offer. The major PC makers, including Hewlett-Packard Corp. and Compaq Computer Corp., are expected to announce similar deals with Internet service providers later this month.