IBM unveils plans to give away free computers

NOBODY in the UK need ever pay for a personal computer again - from this week new IBM models will be delivered free of charge to any home that wants one.

In a move that will send shivers through the PC manufacturing and retailing sectors, US computing giant IBM is working with British start-up company Metronomy to supply a free IBM PC, which would otherwise retail for around 800, to every household in Britain.

It is anticipated that around two million of the computers will be given away over the next three years, with an initial 200,000 being shipped in the first few months of 2004.

The only catch is that users will be subjected to one minute of TV-style ads coming on to their screens every 20 minutes. If the user wishes, the ad break can be delayed by a maximum of five minutes to allow completion of another operation such as a secure online purchase of an airline ticket.

Metronomy is supported by global advertising giants Omnicom and Interpublic, who have identified a way of using the PC market to take TV advertising into the computer age.

Initial advertisers include Churchill Insurance, part of Royal Bank of Scotland, which is using its TV ads to sell to the PC user market.

Metronomy chief executive John Thornhill said: "The PC enables TV advertisers to specifically target precise groups of users by mining the data provided by the users when they apply for their free PC."

Although individuals’ personal information will remain confidential, the database will enable the advertisers to direct their ads at specific geographies and types of customer.

In order to continue to access the new PCs, users will have to install a CD each month to update the advertising content. This will enable advertisers such as Churchill to trial a variety of ads with different types of customer.

Thornhill says future free software could also include the kind of ‘softphone’ application that enables computer users to make free international telephone calls over the internet.