AltaVista, the Internet search and media network, said Thursday it is offering free Internet access that does away with monthly subscriptions in favor of a fully advertising-supported model. It's a move that could shake the industry's financial foundation.
The standard dial-up telephone line service can be downloaded off the Web, and AltaVista, currently the 10th-most visited Web destination, expects new revenue to be attracted by a larger user base.
See also: Europe Mulls Free Service- - - - - -
"We think we will likely be the immediate leader in free online access," said AltaVista spokesman David Emmanuel. "I wouldn't compare us to America Online or Yahoo, but we'll certainly be the leader of those currently offering free access."
AltaVista's service will allow users to navigate the Web through a small window that can remain open on a desktop while the user continues other activities on a computer. The so-called "MicroPortal" will display customizable information such as business news or weather updates.
"The MicroPortal allows us to target advertising to the specific tastes and needs of different people," said Emmanuel. "This offers new streams of revenue."
AltaVista is currently a 100 percent-owned unit of Compaq Computer, although Compaq has agreed to transfer 83 percent ownership to CMGI, an Internet venture firm.
Copyright 1999 Reuters Limited.
