Dell goes Direct to Internet
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September 23, 1998: 12:10 p.m. ET
AT&T, Excite, SBC to partner with PC maker's new Internet offering
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NEW YORK (CNNfn) - Dell Computer Corp. on Wednesday became the latest computer maker to offer customized Internet connections from its computers.
The new service, ConnectDirect, will be included beginning this week on Dell's Dimension line of desktop PCs. The service provides users with a one-click connection to personalized Internet services.
"Dell is clearly a PC company, but increasingly as we go forward, we are more and more of an Internet company," said Paul Bell, senior vice president of Dell's home and small business unit. "The Internet is part of everything in the way we do business with our customers."
Dell said it has chosen AT&T Corp. and Excite Inc. as its premier Internet providers for ConnectDirect, which will launch upon booting up the computer.
Users who access the service will be able to accept a free trial of AT&T's WorldNet service. Upon launching WorldNet, a customized version of Excite's Web portal will serve as the start-up screen upon logging on to the Internet. The start-up page will be co-branded by Dell and Excite.
Bell said while Dell is continuing to search for additional Internet service providers (ISPs) to offer customers more choices through ConnectDirect, the company has no plans to add additional portal companies.
"We will continue to develop this initiative on a nonexclusive basis," Bell said. "(But) we currently have no plans for other portal partners. All the choice on that end clearly comes from the personalization users will have on Excite."
The company also said customers will be able to choose from Dell's basic, proprietary Internet browser -- designed for novice Web surfers -- or Microsoft's Internet Explorer as their default Web browser.
High speed service
Dell said it will offer ADSL (Asymmetric Digital Subscriber Line) services through ConnectDirect. ADSL technology provides high-speed Internet access through existing phone lines and lets users download files from the Web while using a phone or fax machine from the same line.
The company said Baby Bell SBC Communications Inc. will deliver ADSL services to its Pacific Bell and Southwestern Bell local carriers. Dell will equip its Dimension PCs with internal ADSL modems from SBC.
The companies said they will jointly market ADSL services and begin rolling out the high-speed access early next year to select cities in Texas and California.
Bell pointed out that Dell will announce additional ADSL service partners during the next few months.
Dell did not disclose financial terms of any of the agreements.
Dell is the latest PC maker to promote quick Internet access through its computers. In May, Gateway Inc. (GTW) said it would let customers sign up for customized Internet services through an Internet icon on the Windows desktop.
Compaq Computer Corp. (CPQ) made a similar announcement in June.
Dell (DELL) shares jumped 3-3/16 to 63-1/4 in late-morning trade. Excite (XCIT) shares soared 8-1/4 to 36-5/8. Shares of SBC (SBC) gained 7/16 to 41-3/8.
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