IC24, the subscription-free ISP launched by Cable & Wireless Communications Plc, The Mirror Group of newspapers, and Compaq Computer Corp is to provide local content to its subscribers in some UK cities, using Zip2 Corp technology.
Zip2, which provides software and services for the aggregation of local newspapers into portals, was acquired by Compaq earlier this year. The IC24 deal marks its first move into UK territory. The IC24 service follows the usual subscription-free ISP model where the outfit is funded with advertising and a slice of the dial-up metered call charges. In this instance, the terminating network is provided by CWC, the ends systems by Compaq, and the distribution and content by the Mirror’s newspapers.
The Mirror owns local newspapers in several large UK cities, and editorial from these will be integrated into the IC24 portal depending on the user’s location. Zip2 will also allow the service to monitor users’ surfing habits, to build a profile of interests for marketing purposes, including targeted banner advertising.
Ten days into its launch, the ISP currently has 30,000 registered subscribers, with a further 120,000 requests for start-up software. Its main competitor will be currantbun.com, a similar service from The Sun, the Mirror’s main rival, which currently has an estimated 100,000 subscribers.
The market for subscription-free ISPs has until now largely been dominated by retailers such as Tesco, Virgin and Dixons. CWC’s IP managing director Lance Spencer said he believes the future for dial-up ISPs lies in the media groups, which have free access to large amounts of editorial content, which is what subscribers want to see. The regional content will also drive growth, he maintains. David Clarke, from IC24, said that the UK’s main growth demographic for internet users was in the blue collar C1/C2 category, precisely the target market of the Mirror Group’s newspapers.
