Dixons does deal with AOL
Freeserve to be replaced as ‘in-house’ ISP
September 1 2003
Dixons will provide AOL as the preloaded internet access service on computers sold through its UK stores from next year.
AOL has outbid rival ISP Freeserve, which was initially funded and launched by Dixons five years ago before being sold to French internet operator Wanadoo.
Dixons will promote AOL’s dial-up service in its Dixons, Currys, PC World and The Link stores starting in February, 2004, when its current dial-up deal with Freeserve expires. A broadband deal with Freeserve runs until February 2005, after which AOL high-speed broadband services will be also be promoted by Dixons.
Dixons chief executive, John Clare said: “We’re pleased to announce this new partnership with AOL which we believe will enable us to offer our customers an unbeatable internet access offer.
“Both AOL and Dixons are tremendously successful and compelling brands in this sector and have great experience in creating products to meet the needs of all customers, from the most sophisticated to the novice PC and internet user.”
Karen Thomson, chief executive of AOL UK, said: “The Dixons Group is one of the UK’s most successful and respected retailers and today’s announcement brings the UK’s leading online service provider to their 1,100 UK stores – making a fantastic online experience even more accessible to consumers.
“We have already established an excellent working relationship with the Dixons team and believe that this agreement represents great value for AOL in terms of subscriber growth and brand awareness.”
Dixons still owns a sizable chunk of Freeserve shares but has been gradually selling off its stake.
