Two free, advertising-based ISPs have begun signing up subscribers in Japan.
Since October 29, livedoor has been taking applications for a free
Internet access service that it will launch in Japan later this month.
Instead of charging dial-up users for their online access, this wholly
owned subsidiary of the US-based livedoor Group will generate revenues
from onscreen advertisements.
Livedoor said it selected Japan as the first in its planned global
network of services because it foresees particularly strong demand here
for free Internet access.
The first-day rush of applicants exceeded the site’s server capacity,
temporarily halting registration until a more powerful server could be
brought online.
Persons wishing to connect to the Internet through livedoor’s free
service must fill out a personal profile questionnaire, which the
company will use to target ads, and download specially designed client
software.
When a subscriber connects, this software opens an onscreen “console”
that displays targeted advertising continuously during online access.
The software, which livedoor has licensed from UK-based free ISP The
X-Stream Network, does not interfere with normal online operations such
as use of a Web browser or e-mail software.
Access to livedoor will initially be limited to the 03 (Tokyo) telephone
area code, although the company plans to eventually open access points
in other areas.
While livedoor will restrict the initial phase of service to 50,000
subscribers, president Yoshiaki Sakitou said the company’s goals are “to
sign 1 million members by the end of next year, and to reach
profitability within three years.”
Advertising will account for the bulk of the livedoor’s income at the
start, Sakitou said, but commission fees from a planned shopping and
financial services e-marketplace will eventually surpass ad revenues.
Getting a jump on livedoor in terms of service launch, ASCII and CSK
Network Systems (CSK-Net) last week jointly began offering their own
ad-supported, free Internet access service.
However, membership in the ASCII and CSK-Net shes.net service, which
started on November 4, is open only to women.
“Up to now, the Internet has been dominated by men,” said the partners.
“Through this service, we are seeking to offer a fresh perspective by
providing information of interest to women, and thereby develop new
business potentials by encouraging more women to make use of the
Internet.”
Personal data about hobbies and tastes gathered from the female
applicants during registration will be used for online advertising and
direct mailings targeted to their individual tastes and interests.
Initially, shes.net will provide free Internet connectivity from 6 a.m.
to 10 p.m. through 28 access points around the country.
The partners plan to eventually add more access points and make the
service available around the clock.
CSK-Net and ASCII said they expect more than 100,000 women to sign up
for shes.net by spring, and anticipate having 2 million subscribers
within three years.
The companies acknowledge that some men may pretend to be women in order
to gain free Internet access, thereby degrading the quality of
shes.net’s statistical data and reducing the response rate to its
advertising,
However, CSK-Net President Akira Mochizuki said he is confident that
“considering the total membership, the effect [of men pretending to be
women] will be slight.”
Mochizuki added that, other than by sending a service ID and password
through the mail to confirm each applicant’s name and address, there are
no plans to check on the sex of the service’s subscribers.
