What do "free PCs" mean for Community Networks?

Introduction

Companies offering to give their customers "free PCs" are getting a lot of press recently. As a person interested in community technology initiatives, I found myself wondering about the implications of this new sales model. After reviewing the press reports and visiting many companies’ web sites, I came to conclusion that the real importance of "free PCs" results from the changes in the computer industry that made these programs possible.

In February 1999 a company called Free-PC announced that it would be giving away 10,000 computers with Internet access in an effort to evaluate a new model for distributing PCs. If the pilot program is successful, they plan to roll out a large-scale program. In order to be considered for the offer, potential customers are required to complete a detailed marketing and demographics survey. The computers that Free-PC is providing are like any other Windows PC, except that the desktop area is surround by a frame of advertising. In order to assure that the advertisement is being seen, customers are required to spend 10 hours a week using the computer. Over a million people applied to the program.

A few weeks after Free-PC’s announcement, another company called PC Free announced their own plan to make PCs more affordable. There are two main differences between the programs. First, PC Free charges $40 per month for the PC/Internet bundle. Second, instead of running a variety of advertisements around the border of the display, the company earns advertising revenues from Compaq by forcing customers’ browsers to default to Compaq’s Altavista portal site and by including an icon on the desktop providing a direct link to Compaq’s online shopping site.

A number of other companies are starting to offer similar programs. The cost of the hardware-Internet access bundles varies, as do the configurations of the machines, but the basic model is the same. The companies generate revenue through a relatively low monthly fee and targeted advertising, while customers gain a PC with Internet access.

Though the idea of a "free" PC is appealing, there are a number of costs and risks associated with these machines. Restrictions on use, a barrage of advertisements, extensive usage monitoring are integral parts of the arrangement. Even if these costs are considered acceptable, there is the additional concern that these new businesses might fail. Most of the companies started in the last several months, and they are all based on a new and not well understood marketing strategy. If the companies should fail, it is unclear what would happen to the data they will have gathered, much less the hardware that their customers may rely on. Finally, though quite inexpensive, it may still be cheaper to buy a computer outright!

For these reasons, this new model for acquiring PCs may be ill suited to community technology initiatives. They do, however, reflect the crossing of an important threshold in the computer market. The success of this sales model depends on the availability of reasonably powerful, very inexpensive microcomputers. The emergence of these programs comes at a time when powerful PCs are less expensive than ever before.

A reasonable power and well-equipped personal computer can be purchased for under $1000. Systems with limited capabilities, but which are still adequate for Internet access and can be expanded to support other activities, are now available for as little as $299. (The Microworkz WEBster Jr. is the first computer in this new category, but many others will undoubtedly follow it.)

This is an opportunity for Community Networks to expand their hardware resources without a tremendous financial investment. One must be careful when purchasing inexpensive machines, making sure that the company is reputable and that the computer’s features meet the requirements of the task, but the sub-$500 computer is here and it may be right for your organization.

Free-PC: http://ww.free-pc.com

Rental Hardware (charge associated with mandatory Internet access)

Empire.net: http://www.empire.net/

Gobi.com: http://www.gobi.com/

Intersquid.com: http://www.intersquid.com/

PC Free (see Wired): http://www.wired.com/news/news/business/story/18714.html

Inexpensive Hardware

eMachine: http://e4me.com/

Microworkz WEBzter: http://www.microworkz.com/ http://www.webzterpc.com/