Free Internet or Bust.

A FEW MONTHS AGO, THERE SEEMED TO BE NO SAVVIER job--nor investment--than that of a Brazilian Internet service provider, or ISP. With about 1.7 million Brazilians on-line and another 7 million expected to hit the Internet by 2002, there was more than enough business for everyone--even for the estimated 400 service providers that plugged Brazilians into the Net last year. * That was before folks starting giving away their service for free. * IG.com, a venture between Banco Oportunity and GP Investimentos, reported it signed up 750,000 subscribers during the first five weeks of its free Internet access service. And America Online, calling Brazil its best international launch, enrolled 65,000 "trial" subscribers at no charge. * "The Internet public is pretty basic here. They are not high-end users, they just want it for emails and to do a little surfing," explains Andy Castonguay, an analyst for Pyramid Research in Sao Paulo. "Why should they pay for something like that if they don't have to? This is going to be the year of accelerated consolidations." * A recent report by the U.S. Commercial Service in Sao Paulo predicts the hundreds of existing service providers eventually may be whittled down to as few as eight.