By Polly Raymond, 3 July 1998 10:16
NEWS Tesco this week became the first UK supermarket to offer Internet access. For £9 a month, TescoNet provides unlimited access to the Web. It is aimed at families and first-time surfers who are looking for quick and easy access. BT will provide and manage the backbone infrastructure and Tesco will put its brandname on the front page. It hopes to drive viewers into its home shopping and finance services. Chris Buerger, programme manager for European interactive services at Datamonitor, said: "This will be a value-added service, a public relations exercise, but it won't make money. Tesco wants to become a one-stop shop and be seen as an innovative family-orientated company." However, he added: "The service is not a great deal cheaper than other, similar options." Many UK banks and associations have already set up as branded Internet service providers to drive customers directly to their Web site. James Eibish, senior analyst at Input, said: "Tesco isn't exactly cool and sexy branding like, for example, Manchester United Football Club - people won't be rushing to have it for the brand name. But there is a pool of people who are likely to use TescoNet over the next 12 months."
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