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To: Vendit™ who wrote (9102)	4/1/1999 5:39:00 PM
From: Frank Ellis Morris	Read Replies (1) \| Respond to of 41369

>> free PC every 36 months and unlimited Internet access for $25.99 per month....<< Hi Vendit!! I am hearing commercials on the radio here in the Philadlelphia area for what you mentioned. I do not know what to make of it yet. We will try to see what the hidden factor is or the scam if any. Sounds too good to be true. Frank

To: Vendit™ who wrote (9102)	4/1/1999 5:47:00 PM
From: Srini	Read Replies (1) \| Respond to of 41369

Vendit: re:Free PC's. Gobi's PC's are supplied by Compaq, I understand. It is hard to predict the ultimate impact on the big box makers; MD has opined that this business model will not thrive. There is also the matter of the impact on AOL in terms of being a threat to their position as the ISP of choice to many newbie buyers of low cost PC's. Srini. PS: I just found the WSJ link, it does not mention COMPAQ. interactive.wsj.com@4.cgi?vigraham/text/wsjie/data/SB922934812904790419.djm/&NVP=&template=news-search2.tmpl&form=news-search2.html&dbname=wsjie/index&words=gobi&any-all=%26phrase%3D+&maxitems=30&HI= April 1, 1999 Gobi Joins Firms Giving Away Personal Computers for 'Free' By LEE GOMES Staff Reporter of THE WALL STREET JOURNAL A New York City company plans to give away a million free personal computers this year to customers who sign up for three years of its Internet service, the latest in a string of such offerings. Gobi Inc. said it will give the computers to people who agree to pay $75 in setup and shipping fees, and who agree to buy Internet service from the company for three years at $25.99 a month -- slightly higher than most Internet service providers charge. Moreover, users must pay $50 to keep the PC at the end of the three years. While nominally free, the Gobi machine will end up costing users roughly $340, considering the shipping and other charges and the roughly $6-a-month premium the company is charging for its Internet service. Gobi is one of a series of companies that in recent months have shaken up the computer industry by offering cheap or "free" computers. The business model for these new companies borrows from the cellular-phone industry, in which hardware is given away in exchange for a subscription agreement for the relevant services. The new agreements are putting pressure on traditional PC makers, which are seeing their average selling prices drop as the market shifts to this new business model. The average PC today costs nearly 20% less than it did a year ago. Gobi executives said they hope to make most of their profit by developing electronic-commerce services for their customers. Gobi said it won't raise the monthly Internet rate for the duration of the agreement. Users canceling before the three years are up can keep the PC, but must pay $699 if they cancel in the first year, $499 in the second year and $249 in the third. At the end of three years, users can keep their machine in exchange for a payment of $50 or less, the company said. The Gobi machine is available from the company's Web site. It contains a 300 megahertz Intel Corp. Celeron processor, 32 megabytes of memory, a 3.2 gigabyte hard drive, a CD-ROM drive, a 15-inch color monitor, speakers, a modem and Windows 98. Other companies with similar business plans include DirectWeb Inc., Mount Laurel, N.J.; Free-PC.com, Pasadena, Calif.; and Microworkz Computer Corp. of Seattle.

To: Vendit™ who wrote (9102)	4/2/1999 6:39:00 AM
From: tang	Read Replies (2) \| Respond to of 41369

Morning, Vendit : Regarding this $25.95/month/36 months PC LEASE program, unless it teams up with AOL, it won't fly, reason: (1) The ISP is a local one, they can lease away their PC and provide ISP connection but user cannot find a local number! This is like the freepc.com, what am I going to do with a free PC but must connect to a long distance number? So, the regional ISPs may feel a bit pressure there. But not if it teams up with a national like AOL! I have to think a bit about the impact if PDGY/ELNK/... catch up this thougt, ummmmmmm... (3) It needs a lot more capital to put up a long period of time for giving-away-pc to grow, this is almost the same risk as the free internet or free PC programs around the country for the past 6 months, difficult to take off without local access number. (4) The price tag is not much attractive to user like me (a cut-throat user), I pay $13.95/month for dial-up, $25.95 - $13.95 = $12 $12x36= $432, $432+$25(setup)+$50(s&h)+$50(buy in at end of lease)=$500, add $99, I can get a box with DVD from the e4me.com joint with 333 mhz, and no obligation. I think this is very much like the Gateway's PC leasing program. I also think if it becomes a trend, AOL may do the same in the future to fend off challenge from regional ISPs. AOL/SUN's contract has a $500 million hardware item, what you think the odds of AOL purchasing the SUN's thin PC and give away? but I heard it is too expensive. This pc-leasing-for-ISP is highly commendable, I hope AOL's management realize the killer potential early! I think in 2-3 years time frame, AOL will team up with CPQ to provide a PC leasing program with a fee of $29.95 /month for 48 months, because PC's price keeps going down every month, CPQ wants to stay at the top, it has CHEAP PC already, it has the volume but their share holders may not be able to accept that. Why there is no TV station give away free TV and do the same in the past? Hey, got nothing to do for 3 days, so b.s. a little here. <VBG>