Ford and Delta see the light
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While I was extolling the virtues of using free services as a way to push the corporate work force into the Internet realm (NW, Jan. 24, page 62), Ford Motor Corp. and Delta Airlines were putting the finishing touches on more ambitious plans. The companies independently announced they will subsidize not only the cost of Internet access for employees who want to get online, but also the cost of the PC.
Ford's 350,000 employees will be able to get a Hewlett-Packard 500-MHz Celeron machine and unrestricted UUNET Internet access for $5 per month. Delta's employees will pay $12 per month for a similar deal.
Both outfits launched their programs with PeoplePC, a firm that buys bandwidth and PCs in bulk and passes on the savings to customers in the form of attractively priced bundles. The average consumer can get a 366-MHz multimedia Toshiba box, unlimited UUNET access, 10M bytes of server space, e-mail and on-site technical support for $25 per month for three years.
Ford and Delta are betting the cost of the programs will be offset by advances that will become evident to their plugged-in work forces. I agree. These companies are to be commended.
Unfortunately, neither company is talking about how much the programs cost, which makes it harder for you to figure out if it is possible or worth following suit. If, for example, you presume that Ford is paying PeoplePC's full $25 per employee per month fee, that means the company could have to pay up to $84 million per year if all 350,000 employees sign up.
But obviously Ford isn't paying retail. Ryan Gilbert guesses the companies are paying $10 to $15 per employee per month for the works, if not the $12 Delta is offering its employees.
Gilbert has some experience in these deals as co-founder and vice president of business development for Brand3, a company hawking what it calls "a unique desktop marketing and relationship-building business powered by free Internet services." (Example: Buy a BMW, get free BMW Internet service and every time you're online there is a BMW box floating on screen).
So Ford may be paying $5 to $10 per employee after the co-payment, and Delta may only be paying a few bucks each, if anything at all.
Now is the time to push similar programs in your company. Besides potentially benefiting the firm, look at the exposure you can get. Both the Ford and Delta deals were announced by their respective chairmen.
- John Dix
Editor in Chief
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