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Thursday 30 April 2009

Freemium services - what are the most interesting examples you have seen of companies providing their core products and services for free ( we have se

Alison's Contribution:

Here's my 2pence worth.

1. There are lots of software vendors have a free edition, some restricted to non-commercial user, others not. SugarCRM is one which you might want to check out.

2. Bundling broadband/voice/tv - many UK suppliers are bundling phone, mobile, TV and broadband - Virgin's latest is £10/product, BT are hitting back with £8 anytime time landline calls (down from £35 couple of years ago) - BT also have the offer of free VOIP evening and week-end. My package has 2 1/2 hours anywhere broadband access which is great to have for the tablet on wireless access.

What else could follow this approach? - Certainly I see a huge market for anywhere broadband connectivity so I'm sure the telecos will hook up with the tablet and mobile computing platforms soon to make it seamless.

Another application which could become more prevelant is Vodaphone family - eg having the ability for 4 to 6 non-business phones to call each other as much as they want for a flat rate per month - £5 for 4 phone numbers. Great for Loyalty!

In terms of items which could use it, I think there are two areas - Gaming and Education which would benefit from wider distribution. Tweenies and teens are already addicted to the on-line social interaction of sites designed for them and as they grow older I see a growing trend for them to look for subscription based services.

The Education market has barely been touched by this to date, but I see viable ways for students to participate individually in global class rooms where their work is shared with others - and all are learning from the best teachers available with class room assistants where required. Whether this will be live or not will depend on the artificial intelligence which can be built into the system.

What would the Business Model be? I think the most useful is a flat rate subscription service, possibly with a peak surcharge and semi-annual tarriff review. So, something like Vodaphones data pack access package but with more functionality.

Another model would be to have a "Choose to Use" on a monthly basis - so if you use a service, you incur a cost from that day for 28 days. Then you can "take a break", and effectively renew the contract when you wished.

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