ICL loses out as Absa opts for paid-for Internet service

Johannesburg, 03 May 2002

ICL, which provides the Internet services for Absa`s free Internet access offer, is set to be cut out of the loop as the bank joins forces with Internet Solutions to move users to a premium paid-for service.

The bank`s free access offer for non-Internet banking clients ends on 1 June when users will have to either agree to pay R65 a month for the service, or close their account.

Mike Semple, ICL infrastructure manager, confirms that the contract between Absa and ICL will end in September, but says the company hopes to lure many of the Absa users over to ICL`s Eject ISP. Eject was established in mid-March when Absa was originally expected to close the free access to non-Internet banking clients.

He notes that ICL only requires about 3 000 users to make the Eject project sustainable. Semple says the ISP already has "a couple of thousand users" and he hopes disconnected Absa users will sign-up in June.

While admitting that "the take up in Eject is not as strong as it could have been," he is still pleased with progress as the current user base was garnered with very little marketing and "word of mouth".

Absa announced its intention to end free access in November 2001. The original date for cut-off was set for March 2002, but the offer was subsequently extended for another three months to 1 June.

The bank`s most recent announcement that it plans to offer "a premium paid-for Internet service" is based on customer feedback, according to Dave Donkin, Absa group executive of e-business and information management.

"We have listened to our users and many of them have said that they would be prepared to pay for the service."

Donkin says the Internet services will be offered under the Absa brand name. The bank, which owns the existing membership base, will continue to administer subscribers, while Internet Solutions will provide Internet services.

"Internet banking will remain the core of Absa`s focus." Donkin adds that the drive is to increase the number of users subscribed to Absa`s Internet banking services.

New clients that subscribe to Internet banking will qualify for a reduced R39 a month service fee while existing free access banking clients will remain on the non-premium service for free. Other non-banking clients will be charged R65 a month for a "premium" service, including speechmail, calendaring, five e-mail addresses and a personal Web space allocation.