Analysts expect other Internet service providers to start giving away free personal computers, following the same business model many cell phone companies have been using. The issue with personal computers is you've already got relatively high penetration and you're not making a lot of money on the service. The thing that should concern the PC makers is that in this case, consumers are not focused on the value of the hardware, they're focused on the value of the service. The brand equity begins to shift to the service provider. He writes that a California-based company is promising fifteen Pentium II computers, Internet service and timely service and maintenance for free.
Schools provide space, furniture and a phone line.
The more expensive monthly fee entitles customers to a more sophisticated PC, but doesn't change the basic terms of the service. Wall Street Journal, March 30, 1999. 5.