UK Govt PC plans miss the mark

1999-10-29

It is interesting to compare two recent announcements, that of the UK government offering PCs at low cost to low income groups, and that of the new wave of Web-ready appliances to hit the markets next year. Essentially, this is about bridging the current and future new business models for consumer IT. The old model states that IT facilities in the home are centred around the PC, wherever it may be situated. The new model, of ubiquitous IT, says that a spectrum of computing devices will exist throughout the home.

UK Chancellor of the Exchequer Gordon Brown expressed his desire to see up to 100,000 refurbished PCs rented out to low income families for a fiver a month. This move has caused controversy over who would pay the phone bills for Internet access. Also, it could be argued that a 486-based PC is still adequate for the Web, and these are virtually being given away today in second hand magazines. Still, the principle of making low-cost computer facilities available is sound.

Meanwhile, it was reported in the Wall Street Journal that Dell, Compaq and Gateway would be launching Internet access devices next year, none of which would run Microsoft software. These devices are to be priced below the cost of the PC and it is likely, if their popularity grew, that the prices would tumble. Here we are seeing the kind of devices that could be given to subscribers of internet services, possibly even undercutting Gordon Brown’s offering of £5 per month. Web devices will not be able to run the same variety of software as the PC, however for most people sufficient facilities will be available directly Web portals such as Yahoo and MSN.

There is life in the PC yet, but in two years time it will not be the only device that people use to access the Web. Fears about an information underclass caused by a lack of computer facilities may be premature.

(First published 29 October 1999)