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Dixons Group is to offer consumers free branded internet access in

an aggressive marketing move designed to undermine competitors in the

field.

The Freeserve web browser will offer consumers unlimited access to the

internet for the cost of local call rates nationwide but without paying

subscription or registration charges.

To access the service consumers pick up a free CD-Rom from stores in

Dixons Group, which include The Link, PC World and Currys, and run it on

their home computers.

Dixons Group is the second high-street retailer to become an internet

service provider after Tesco. The supermarket began its service in July,

charging pounds 8.99 per month for unlimited access. At the time this

was the cheapest package on offer to internet users. BT Internet charges

pounds 11.75 per month, Virgin Net pounds 11.99, America Online pounds

16.95 and Demon Internet pounds 10.

John Pluthero, corporate development director at Dixons Group, said: ’We

launched the service because we are a technology-based company and have

a stable of shopping brands.

’Selling products over the internet will take off, so we want to be

there. Our service is not about competition but about our

customers.’

Although Dixons will receive no money from consumers it will pull in

revenue from sponsorship and advertising on its web site and from

e-commerce deals with various shopping partners.

Dixons Group has teamed up with Energis to provide the network and with

Planet Online for connections. PA New Media, the interactive division of

Press Association, will provide the web site’s content.

The service will be supported in-store and later by press

advertising.

It will promote Dixons’ online store at www.dixons.co.uk.