Free Internet Service Provider Installs Links to Cut Loss.ACCORDING to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. its ad campaign, NetZero Inc. is one of the "defenders of the free world," but getting a free lunch at the ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. is becoming increasingly tricky. Beginning late last month, users of the ISP were greeted by a new, browser-less page when they logged on. The page, called "Best of the Net," contains links to an array of sites in various news and information categories, but not the familiar browser browser Software that allows a computer user to find and view information on the Internet. The first text-based browser for the World Wide Web became available in 1991; Web use expanded rapidly after the release in 1993 of a browser called Mosaic, which used that users had found when they logged on before. To get to the Internet and to a browser, the user must now click on one of the Best of the Net links or conduct a keyword search. "We did this totally for our users," said NetZero CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Mark Goldston. "Our whole business model is to provide access to the Net for free under an ad-supported model. And we make it easy." NetZero struck pay-for-performance deals with the businesses that placed links on the Best of the Net page, and some of the businesses paid for placement. "We get paid for taking you to those sites, which is why we can pay your telecom bill," Goldston said. NetZero isn't forcing users to visit the sites, according to Goldston, but is instead "strongly suggesting that this is the best that the Net has to offer." It is too early to tell how users will take to the new page, but NetZero's overall population of registered users has been steadily climbing. Through Dec. 31, some 7.7 million users were registered for free Internet access See how to access the Internet. , of which 3.9 million used the service in the month of December, according to NetZero. Goldston said the number is today as high as 8.4 million registered users. In addition to the new page, NetZero, like other free-access providers, has sought to curb heavy users of its Internet service. The company has now capped usage at 40 hours a month (NetZero says its average user spends about 15 hours online). It is charging $9.95 a month for those who exceed 40 hours. Later this month, NetZero will also offer a $9.95-a-month service for unlimited, banner-less access. Goldston is optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about this new revenue stream, which could help compensate for dwindling dwin·dle v. dwin·dled, dwin·dling, dwin·dles v.intr. To become gradually less until little remains. v.tr. To cause to dwindle. See Synonyms at decrease. ad revenues, he said. "They're trying to bring revenue and cost curves closer together, and they're doing that efficiently," said Pacific Crest Securities analyst Jeff Goverman. "It's not as a result of something they did, it's something that's been done to them. The revenue line kicked down, and they're reacting in a positive fashion." Positive or not, investors are still wary of NetZero's advertising- and commerce-supported ISP model. The stock has dropped into the under-a-buck category, down from a high of $27 last March. Last week it was hovering hov·er intr.v. hov·ered, hov·er·ing, hov·ers 1. To remain floating, suspended, or fluttering in the air: gulls hovering over the waves. 2. at about 80 cents a share. Maybe that skepticism has something to do with NetZero's mounting losses. The company reported a net loss of $43.3 million (38 cents a share) for the fourth quarter ended Dec. 31, compared to a net loss of $24.5 million (27 cents a share) in the like year-earlier quarter. Net Zero's fourth-quarter revenues were $16 million, up from $12.2 million in the like year-earlier quarter. Goldston insisted that his company has a "heavily loaded cash balance sheet" with $182 million in cash and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. as of Dec. 31. The stock is in the dumpster, Goldston said, because "the market is in a ridiculously irrational ir·ra·tion·al adj. Not rational; marked by a lack of accord with reason or sound judgment. irrational adjective Unreasonable, illogical state right now." |
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