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

Secure remote control for conventional and virtual desktops

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.