“While the Netscape Navigator browser was once the overwhelming
choice on the Web, Microsoft began a strategy of giving away its
own browser, Internet Explorer, and now the two browsers are
running neck and neck. … It made its Internet Explorer the
default browser for its dominant Windows operating system, which
eventually led to a mammoth antitrust case brought by the U.S.
Justice Department and 19 states, alleging it was trying to use
Windows to muscle aside competitors in other areas.
‘The question is can they offer it free without it looking
like predatory pricing,’ said Jeffrey Maxick, Internet analyst
with Madison Securities. ‘I’m not sure they can do something that
extreme when in the next six months they’ll be getting some kind of
judgment in the Department of Justice trial.’ “
“…if Microsoft does decide to take the plunge into free
access, it had better be prepared to pay the price, said Tim Sloan,
director of tech research at Aberdeen Group. ‘If they make an
investment but can’t drive revenue [for] two years and are giving
away access for two years, it’s going to be difficult,’ he said. ‘I
know Microsoft has a lot of money, but it would begin showing up on
the bottom line.’ “
“Some of the obstacles such a provider would need to surmount
are technological… since most companies thus far are dealing with
a small subscriber base. A free ISP with millions of users would
have to compile, manage and utilize a huge database of customer
information in order to garner the top-dollar type of targeted
ads… Currently, no technology exists to take complete advantage
of that specific user information…. free-access providers will
find it difficult to fully leverage their advertising muscle.”