By CHRIS BARTON
A free internet service from Compass Communication has attracted 5000 subscribers in its first week, with 2000 joining in the first 24 hours.
Managing director Karim Hussona said he was astounded by the uptake, which was way ahead of expectations and had forced a rethink of the firm's target of 10,000 customers this year.
"We're now anticipating a much larger target for the end of the year - probably double that figure."
The surge of interest in the "freenet" service has forced Compass to bring forward plans for more capacity and speed its rollout to centres other than Auckland, Wellington and Christchurch.
Hamilton was added last week and will be followed by Dunedin, Tauranga, Palmerston North, Rotorua, New Plymouth, Napier and Hastings.
Mr Hussona expected some reaction from large internet service providers (ISPs) such as Xtra and Ihug, which would want to stem the outflow of their customers.
Freenet, launched a week ago, offers 10 hours' free internet access a month, including a totally free introductory offer until the end of May.
At that time those using more than 10 hours a month can opt for a flat rate of $20 a month for 300 hours - about $20 cheaper than the unlimited access monthly accounts from large ISPs. The only way to sign up is via freenet's web site.
Freenet aims to make money through commissions on online sales. Retailers, including Compass' own toll call and telecommunications services, will be added to the site at the end of May.
"We've had lots of interest from retail sectors we hadn't considered," said Mr Hussona.
Freenet will provide a free browser-based e-mail service - similar to Hotmail - at the end of this month. Until then users are being advised to keep their current e-mail addresses.
The no-frills site has yet to provide a members' section where users can update changes of address, change passwords or view their online usage.
Free internet offer hooks avid browsers
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