ZFree to finish

By Phil Boeyen, ShareChat Business News Editor

Tuesday 26th February 2002

Pioneering free internet service provider ZFree is closing down.

The service's owner, TelstraClear, has confirmed that the ISP will be scaled down from tomorrow and will close at the end of April after delivering 57 million free internet hours to New Zealanders.

TelstraClear spokesman, Patrick Carson, says the decision is directly related to the global downturn in e-marketing.

"The tough operating environment has affected on-line businesses around the world and ZFree has not been an exception. It is no-longer a viable commercial proposition."

ZFree was launched around two years ago and once took the spot as the country's second largest ISP. In December 2000 it introduced restrictions on accepting new subscribers after reaching 250,000 registered users months ahead of projections.

When it was first set up the site planned to gather revenue from advertising and sponsorship, interconnect fees and through providing technology services to business partners.

TelstraClear says it has launched a service which it hopes will appeal to ZFree users called Home 150.

It describes it as a "value for money entry-level residential product" costing $14.95 per month for 150 hours of net access and no joining fee.

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