Feeds

Microworkz signs $300m ISP deal with AT&T

That's a heck of a lot of iToasters it needs to sell

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Cut-price PC vendor Microworkz has signed up AT&T as its new ISP following the company's fall-out with its original Internet access provider, EarthLink. From 15 August, anyone who buys a Microworkz iToaster Net access device will get free access to the Internet -- or at least for the first 150 hours they're online each month. Buy any other Microworkz PC and you'll get 150 hours of Net access for $11.95 per month, the company pledged. The company did not specify how much extra users would pay if they exceeded the 150 hours per month limit. Microworkz said the contract with AT&T will cost the company $300 million. The deal only lasts three years. Assuming an industry standard margin of 20 per cent -- and given the low cost ($199) of Microworkz' boxes, its margins are likely to be significantly lower than this -- the company will have to sell over 7.5 million iToaster during that three year period to pay AT&T, let alone actually make any money on the product. That's significantly more Internet devices than it managed to sell by bundling in Net connection through EarthLink. The ISP claims it gained only 1000 new customers through Microworkz -- and has yet to be paid by the PC vendor for providing them with Net access. That's why its suing Microworkz. The latter is countersuing, alleging its business was damaged by poor service on EarthLink's part. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.