IBM Bundles Juno Service

Juno Online Services Inc.
hopes to snare more dialup customers with Wednesday’s announcement to
bundle its service with certain IBM
desktop computers.

Starting in mid-August, IBM is bundling the Juno service with its low- to mid- priced PC product line,
including the NetVista ($1,089) and Aptiva ($699-$2,219) models. The
agreement is a multi-year distribution deal.

Charles Ardai, Juno’s president and chief executive officer, said the deal
gives IBM users access to Juno’s free and premium online services.

“We’re excited to be working with IBM and pleased that they have agreed to
distribute Juno with their personal computers,” Ardai said. “This
relationship will put Juno in front of many potential new users, and will
bring added value to IBM’s customers.”

Juno offers both free, advertising-supported access and fee-based options to more than
11 million subscribers. Of that number, 3.38 million are active users made up of paying subscribers and free users logging on through Juno
at least once a month, making it the nation’s third largest ISP behind America Online Inc., and Earthlink Inc.

Beck Yeamans, Juno vice president of public relations, said the deal gives
Juno a better chance to reach consumers as they begin their PC experience.

“Juno will reach a very wide audience with our deal with IBM,” Yeamans
said. “IBM customers will find Juno a very valuable resource when they
sign up for our service and see what we have to offer.”

This isn’t Juno’s first venture into bundled deals with hardware
corporations. In June, the ISP announced a similar agreement with wireless
handheld Palm VII products.

Selling Internet service with computers is considered a savvy move for
ISPs, as first-time computer customers are likely to try the offered ISP

Both AOL and Microsoft
have deals with retailers to offer rebates
to customers who buy a computer, on the condition they sign a multi-year
contract for the service.

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