SAN FRANCISCO, JULY 10: In the latest wave of companies embracing the move to offer free personal computers, Micron Electronics Inc said on Friday it is now giving a free PC to consumers who subscribe to its premium internet service.But consumers must sign up for and pay in advance for three years of premium internet service. The three years of monthly service, $ 21.95 a month, is equal to $ 1,087, plus an activation fee of $ 49. The signup fee is waived if one signs up online. "We are in the midst of a transformation in the way technology companies must service the computing needs of consumers," said Joel Kocher, chairman of Micron Electronics, a direct seller of PCs. "Consumer behaviour is changing the economics of our industry every day," he added in a statement.Nampa, Idaho-based Micron Electronics said that it is offering a free PC to consumers for life. When consumers resubscribe after three years, they get a new PC and they get to keep the original PC. Micron's offer also includes a three-yearon-site hardware warranty, valued at $ 99, plus other educational services and subscriptions. Most of the companies which have been offering free PCs in exchange for signing up for internet service are not requiring customers to pay for their long-term commitment in advance. For example, late last month, Dulles, VA-based America Online Inc signed a pact with low-cost PC provider eMachines. In their deal, Irvine, Calif-based eMachines is bundling AOL and CompuServe software into all eMachines PCs. Consumers signing up for three-year memberships of the new CompuServe service will receive a limited-time rebate of $ 400 toward the purchase of three eMachines PCs, including a $ 399 model. "There are more elements to the (Micron) programme," said Roger Kay, an analyst at International Data Corp in Framingham, Mass Kay pointed out however, that Micron Electronics's move is significant because it is one of the biggest PC vendors yet to embrace the trend. "This is nearly a major vendor coming out with it, as opposedto some new company made up to do this kind of thing," Kay said, referring to companies such as the privately-held FreePC in Pasadena, Calif, which gave away 10,000 free PCs in exchange for market research information from consumers.Both Dell Computer and Gateway Inc, two rival direct sellers of PCs, are now offering free internet service in different parts of Europe, as part of a huge rise of free internet services across Europe in the past six months. Top
