News

New Zealand kiosk firm zooms back to free Internet model

May 13, 2002

AUCKLAND, New Zealand -- Kiosk deployer Zip Internet and online automotive sales service Autozoom.com have joined forces to provide free Internet access through kiosks at four shopping malls in Auckland, New Zealand.

Under the year-long trial that was recently launched, Zip Internet will provide kiosks featuring wireless broadband access to the Internet. Full access to the Internet, apart from roughly 300,000 pornographic sites, will be available, according to the New Zealand Herald.

To make the program financially viable, Zip Internet is depending on advertising revenue, led by Autozoom. The automotive portal is featured prominently on the enclosure of each kiosk at a cost of nearly $1,150 per month, per kiosk. Zip Internet is also drawing revenue from 10 advertising Web site links, which cost between $250 and $500 per month.

Zip Internet initially planned to deploy pay-per-use Internet kiosks at shopping malls in four New Zealand cities beginning late last year (See story: New Zealand set for kiosk expansion). But Zip Internet sales and marketing director Raj Bhandari told the New Zealand Heraldthat the pay-per-use model was abandoned in favor of charging higher advertising rates.

"You are looking at a maximum of ($180 to $230 in pay-per-use revenue) a month, even in the most strategic sites," Bhandari said.