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The end of the Net bundle?

The end of the Net bundle?

Veteran of the bundled PC Internet pack- age eisa may be facing up to the prospect that its much-vaunted deal may not be the way to the desired critical mass of Internet subscribers.

The company reported provisional unaudited results for the year to December 31 showing a loss before tax in the order of $13 million.

The greater-than-forecast loss was attributed in part to lower-than-anticipated sales of its eisa PC product.

But, in the statement to the ASX, eisa advised that it will be enhancing the range of its bundled Internet products although it will be reducing its reliance on its PCs.

However, the statement went on to include that `overall, bundled PC products will become a less important business line and that Internet access, content and e-commerce will become more significant'.

Referring to `aggressively rolling out its Internet backbone and extending its geographic coverage in the first half of this year', the statement also said that `marketing emphasis in both the retail consumer and corporate sectors will complement the network expansion . . .'

While defending its PC bundled deal recently, (ARN January 26, page 1) eisa managing director Damien Brady hinted that it may look to other PC suppliers and boost its subscriber numbers through acquisition.

`I am confident that a combination of organic growth and acquisitions will deliver the returns our shareholders expect', Brady said.

Last year, several high-profile retailers promoted PCs bundled with Internet access plans ranging from 24 to 36 months, and reports suggested that the actual sales generated were less than expected.

The eisa package has been promoted through retailers Tandy and the Strathfield Group as well as a collection of independent resellers.htttp://www.eisa.com.au


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