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We think this business model is very questionable.

 

CNET TV: The Free PC movement
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Who profits from the great computer giveaway?

News.com Special Report
By News.com staff
October 8, 1999, 4 a.m. PT

Can free PCs really pay off?
The companies giving away computers at best can expect a few hundred dollars in gross profit per customer. That makes other revenues vitally important. But will any of this make money?

ISPs caught in rebate frenzy
Internet service providers are offering large rebates to computer buyers who sign up with them. These deals initially bring the ISPs precariously close to the red--but they say the risk is well worth taking.

The rebirth of CompuServe
Until recently, upscale CompuServe was described as the ISP version of the New York Times while AOL resembled USA Today. Now, with CompuServe drafted into the battle for cheap Internet access, it might be more fitting to call it the Main Street Gazette.

Looking for escape clauses
You may have scored a real bargain by signing up for three years of Internet service in return for getting a personal computer for next to nothing. But there may not be much you can do to break the contract if busy signals and dropped connections plague the service.

    
 
 Related news stories
Microsoft's ISP strategy

Micron, Prodigy, Linux join "free PC" trend

Will Apple join the "free PC" movement?

CompUSA joins the "free PC" subsidy craze

AOL, Microworkz talks signal "ISP-PC" convergence

 

 News around the Web
Trouble follows Microworkz's fast start
Seattle Times 
Where Are the Good Ideas?
UPSIDE Magazine 
Internet Veteran Will Introduce a Spin on the Free-PC Venture
Wall Street Journal-paid subscription required 
A PC in every pot
Salon 
The Trouble With Rebates
New York Times-free registration required 

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