|
March 16, 2001
Headlines:
ListServe Gets Hot---Naming Companies Not to Do Business With!!!! Potential Fraud Alert--- Fitch: US Commercial Finance & Leasing Companies -- Outlook Negative More on American Express and Free Internet Access New York Times---After Nasdaq's Big Boom, Expect a Bust to Match ( this is an excellent article, worth your time to read ) In this issue: NAELB CODE OF ETHICS ------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------- Plastic Card Leasing Controversy Editorial I will stand behind my question to leasing associations about enforcing their Code of Ethics. Are the plastic card leasing companies tactics ethical, barely ethical, unethical? My question was directed more at the associations. If they have a Code of Ethics, are they enforcing them? Leasing News is conducting a survey of all the leasing associations, asking them how many members were expelled or censured in the last twelve months for not following their code of ethics or standards. Leasing News will report the survey next week. We will continue our series on association standards and ethics, and plan to expand them with interviews from the associations, such as Joseph Bonanno, Esq, on how many complaints they get, what the procedure is and the results. We also plan to ask readers for their opinions about ethics and the enforcement by their association of standards and ethics..
Kit Menkin---editor/publisher ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- Hey, on a more lighter note, today is Joe Bonnano 45th Birthday, March 16, 1954 Please send him an e-mail or electronic card: Joseph G. Bonanno <attyjgb@aol.com> ____________________________________________________________________________________________ Southern California Meeting Next Wednesday ( if you are in Southern California next week, here is an event you should not miss! ) March 21 Long Beach, California Wednesday next Week Marriott Long Beach 4700 Airport Plaza Drive Here is your opportunity to attend at a "member price," by just mentioning Leasing News!!! Equipment Leasing Association Great Topic!!! Meet Your Colleagues!!! A lot of Freebies, too!!!!! Topic: How Compensation and Talent Affect the Bottom Line Speaker: Teri Gerson, Executive Solutions for Leasing & Finance, Inc. Location: Marriott Long Beach, CA (4700 Airport Plaza Drive) Date/Time: Wed., March 21, 2001, 3-5pm for Presentation and Networking hosted cocktail reception 5-7pm Reservations: Jeanne Lund (703) 516-8366 (ELA) Host: Paul Nibarger, Nibarger Associates (310) 541-8609 Cost is $65 if you mention you read this in Leasing News (save $35). All attendees also get, for free: * Equipment Leasing Association Survey of Independent Leasing Companies---$99 value * Equipment Leasing and Finance Foundation B2B Report--$250 value door prices and other give away's and a "hosted" cocktail reception Speaker Teri Gerson will answers these questions: + Your company has real advantages that big companies can't offer. Can you identify them and answer why people are attracted to some companies and not others. + What industry trends can tell you where to look for new vendors, leads. Learn about four new trends. + What are the real earnings for today's leasing people? Get the current numbers. What kind of package do you need to attract talent in all fields for your company. + Some companies grow to become market leaders. Their people got them there. Do you know how to spot talent, or are you finding out the hard way? While we do our best, the best place for news and information is still "eyeball-to-eyeball". -------------------------------------------------------------------------------------------- A Suggestion from a Reader Keep up the diligence on VenServ. I am sure you will find some interesting stories to tell. On another matter, is it somehow possible (using plain text) to make clear the parts of your newsletter that are quoted from new releases, or company propaganda? To the hurried reader, VenServ might actually look like the "premier provider of innovative, web-based product financing solutions." I wonder how MicroBilt would feel if they understood who they were really dealing with? Name With Held
( A very good suggestion. I think I will start putting ########## and noting "Their Press Release." Most of the business news you see, are generated by the public relations companies, and very few of them are "edited." editor ). ---------------------------------------------------------------------------------------------- National Association of Equipment Lease Brokers For $295, you not only get membership in the organization, with a host of benefits, but Listserve. This is a wonderful forum. Because it is a listserve, you basically can almost say anything, because it is between members, and not from the association, and the greatness of this is the freedom that it allows, the information that it brings forward, and I would say in the 50 years of the leasing industry, it is the best thing that has happened. If I were a broker going into business 30 years ago, I sure would be a lot further along if I had access to the information and sharing of information. Right or wrong, good or bad, accurate or not accurate, this is truly a wonderful, free forum and the best use of the internet I can think of in our industry. I applaud the board for this wonderful instrument. It allows members to ask about information about sources or where to send a specific transaction ( called a "deal", in the trade ). It also now allows them to warn others of companies not to do business with. Leasing News makes no comment or gives credence to this list, and we are printing only as an example of what members of NAELB are sending to each other: "To: post@naelb.org Subject: Naelb Discussion List Fwd: Less Than Ethical Funding Sources << Message: Less Than Ethical Funding Sources (2.10 KB) >> Well, it seems as though we have a list. Here are the responses thus far.... << Copy, paste, add and forward........ Alliance Funding American Funding 817-572-5282 Paul Suttin Atlantic Commercial J.T. Swindle (no joke) BancUnion Trust 305-463-8688 Miami, FL Chase Capital Credit Commercial Leasing of Louisiana Kelley Herbert-Kept 20K from a dealer Countrywide Leasing, Austin, Texas Curren Funding Tim Curren Anaheim Lease Capital, Huntington Beach, Ca. 800-964-3664 Nations Capital Credit NCC Ent. OneLease 800-996-7440 Parker Leasing and Financing Ft. Lauderdale Spectrum Terminal Marketing NY, NY Universal Capital Services 352-597-0400 Spring Hill FL U.S. Capital (Leasing) 800-672-5075 Santa Barbara, CA ABCO Leasing in New Jersey. Matthew Burke, and James Flemming Flex Lease, Chuck Griffin Leasing Technology (owned by BancAtlantic)in W. Palm Beach, FL" Again, we make no comment nor have we endorsed this list as Leasing News. We are printing it solely as an example of a new "list" being generated on List Serve
National Association of Lease Brokers members e-mail us to let us know their "List Serve" is an "outstanding member benefit." They state, "...because its no time to go it alone.!" Right now 1/2 of the NAELB membership is using this service, according to Michael Meacher, president of the organization. Along with the promotion of the New Orleans Conference in May, this service is being promoted to all its members by e-mail and fax. Here is a copy of it: 1. have you ever needed to find a funding source? 2. Would you like to be alerted to the latest fraud schemes? 3. Have you ever struggled with documentation, pricing or strLicture of a lease? 4. Would new ideas oil management, employee compensation, etc. be helpful? 5. Do you like keeping in touch with NAELB members? If you answered "yes" to one or more of the above ... You Need to subscribe to the NAELB List Serve! There are many seasoned brokers that are ready, willing and able to answer your questions! Its like having an NAELB Conference at your fingertips each and everyday. If you are a current member of NAELB and would like to access the List Serve, simply follow the directions below: 1. Log onto WWW.NAELB.ORG 2. Click on the "Members" section 3. Type in your User ID and Password 4. Click "Submit" 5. Click "Discussion List" 6. Click "To Subscribe: send e-mail to imailsrv@naelb.org or 7. Type the following in the text box (largest box) . subscribe post your name 8. You are now entered and ready to post & receive List Serve messages. If you are not a current NAELH member or have forgotten your User ID and/or Password, please call NAELB Headquarters at 1-800-996-2352. ----------------------------------------------------------------------------------------------- POTENTIAL FRAUD ALERT --- *************************************************************** Tech Com, Inc. 1945 Placentia Ave Bldg A - Second Floor Costa Mesa, CA 92627 Tel: 949-645-1562 Resale # 97-808551 Fed Tax ID # 62-0109572 www.techcominc@earthlink.net (former address was 2183 Fairview Rd. #220) President: Vanessa Reynolds SS# -------- home address: 2364 (1/2) Elden Costa Mesa, CA 92627 (we believe she is only acting as a "figurehead" based on her credit and to hide other individuals) General Manager: (ring leader) Ernie Reinhardt Sales Rep: Byron Allen + 4 or 5 others ** The fraudulent bank ratings used were "SUNTRUST Bank" - Maryland. and "PEOPLES Bank" - California. We have information beyond a reasonable doubt that leads us to form the opinion that a vendor by the name of TECH COM , INC. (Costa Mesa, CA) is involved in a sophisticated scheme to fund transactions using various forms of false information. Several transactions have been funded and the appropriate funding sources have been notified. First payments due by the Lessees have been made, however, it is our opinion that it could be just a matter of time until the vendor has "sold" enough equipment to satisfy their needs, at which time the lease payments may stop. Police and FBI have been notified. At this stage there have been no criminal charges filed and we may be inadvertently "tipping" off the bad guys, however, we are taking this risk as a professional courtesy, in an effort to protect others in the leasing industry as we are aware that numerous transactions are in for funding at this time. Opinion Overview: Tech Com, Inc. operates under the guise of 4.5 year old Computer Equipment Dealer and may sell some legitimate systems. Delivery of equipment may be non-existent, except in cases of inspections, at which time equipment is delivered and later removed. Equipment cost ranges from $25,000 to $75,000. The individuals involved in this scheme have a better than average working knowledge of the equipment leasing industry and its credit / funding processes. We were introduced to the vendor initially via a Lessee who contacted us from our web site. The Lessee indicated they also found Tech Com via the Internet. They ultimately used Tech Com for their computer equipment purchase, which we financed. A company by the name of Tech Com, Inc. is verified with the State of CA - Dept of Corporations, also 4.5 years old, however this company CEO and agent, as well as city of operation is not Costa Mesa. The Tech Com registered with the State of CA has been notified. Tech Com is listed in D&B, however, limited information is provided. And the vendor profile we have is limited. Tech Com clients are located in CA and most recently Maryland. When asked how Tech Com generates a large volume of business in Maryland the response was "a friend is referring the deals." This Maryland business, a dozen new applications in one week, is what raised our suspicion. Most Lessee businesses were not listed with D&B. The one or two that were had only developed a file with D&B in the last 6 months. Most businesses applying for financing were existing but used an unknowing individual and his / her SS# and represented this person as the owner of the business. In other cases, the contact was the true owner and the businesses were newer, however the vendor and lessee schemed to provide a 5 year "time in business" history. As you read you may find loop holes, inconsistencies or unexplained accusations. Remember, we are not able to provide every detail in this forum. This is only an overview. However, we are able to address each area of contention with substantial evidence one on one. If a group wants to conduct fraud in our industry it is difficult to stop and this method is difficult to uncover. However, we think we have. Common Denominators: All Lessee applicants completed the vendors application. All Lessees point of contact were individuals other than the Guarantors (PG). The vendor was always the go-between (liaison) on each transaction. When these three factors stand alone or are combined, are not uncommon, they are definite indicators of potential fraud, especially when the mode of operation is consistent on every applicant. There was a common inquiry on most TRW's from a real estate / mortgage company. This inquiry is not noticeable on an individual TRW, however, when it appears on 11 out of 12 TRW's it is more than a coincidence. Bank and loan references (CA and MD) given on 10 of 12 applicants were at the same bank. That is highly unlikely. This false phone number for the bank rang to an individuals home from 9-5, and after hours was forwarded to the real bank. The supposed bank branch phone number was confirmed with the bank headquarters as a non-existent bank phone. The same female who gave references on all these bank ratings used 3 different aliases and always asked for the business name and acct #, as to verify which ratings remained for her to respond to. The ratings response were mostly "Mid-5 figure" and "open for five years." This same bank phone # was used for a second bank rating, a different bank. This is where the process got sloppy, the female stated that the 2 banks had merged. Further investigation indicates the 2 banks have NOT merged. Some bank references were forwarded to bank representatives cell phones to obtain a reference. When employment verification on these bank representatives was conducted it was discovered that no such person existed. Trade references were directed to private (direct) phone lines and appeared to be friends (co-conspirators). Faxed bank ratings and trade references from different banks and trades have been received from what is easily identified as the same fax machine. Letters of explanation from different Lessees for various credit issues have been generated from what is easily identified as the same computer / printer, based on its layout and format. Copies of Drivers License's from different Lessee's have been generated from what is easily identified as the same copier, based on a common "streak" on the copies. Employment on TRW's varies from business name. Lease documents returned via UPS overnight with generic labels, when tracking number traced to origin, all packages sent from common address for different Lessees Individuals presented as PG's were located via 411 information, contacted at home and had no association of Lessee business or finance request. These individuals have since contacted their local police. Fake Drivers Licenses are used. 4 new vehicles were viewed at the Vendor's location just last week. A new Mercedes, Lexus and 2 Range Rovers - so new they did not even have license plates yet. We received a call from a former employee with a "tip" that we should not be doing business with Tech Com. One Lessee who's transaction funded has since changed his phone # and does not return calls. Office space Lease for one Lessee "A" is actually under the name of another applicant (lessee "B"). And it appears that the Lessee A works for Lessee B at Lessee B's other out of state office. confusing ? We have forwarded this information to funding sources that we know have funded transactions with this vendor and a few have had other submissions from other brokers with the same vendor, so we are not the only broker being victimized. It appears that Tech Com is working the system via numerous reputable brokers. Obviously, there is more evidence and facts available. We have included a sample of our information in an attempt to make other brokers and funding sources AWARE and to educate on some of the ways fraud is conducted. If you have any other knowledge of this vendor please share it with us. In the event you have information / evidence that may be helpful in prosecution please contact: Inspector Sheila Cannan - Costa Mesa, CA Police @ 714-754-5294 or Detective Tim Leverette - Baltimore, MD - Police @ 410-396-2400 ( Name With Held ) ------------------------------------------------------------------ NAELB CODE OF ETHICS As broker members, funding source members, associate members and honorary members of the NAELB, we pledge ourselves to maintain honesty, professionalism and integrity in all our dealings with customers, fellow members, the public, equipment vendors, all licensed professionals, other brokers and funding sources, employees and subcontractors and members of other professional leasing associations. We ascribe to the following Code of Ethics and pledge ourselves to the word and principal of these ethics: 1. We will demonstrate honesty, professionalism and integrity in all our relationships and business dealings with customers, fellow members, the public, equipment vendors, all licensed professionals, other brokers and funding sources, employees and subcontractors and members of other professional leasing associations. We will at all times adhere to two golden rules: First, treat other business professionals as we would like them to deal with us and Second, to always conduct our business dealings so as to reflect a positive image upon our profession and the Association. 2. We will respect the right of ownership of property. Where we have received funds in a fiduciary capacity, we will hold and account for those funds until returned or owned. If a transaction does not close, we will not keep such funds unless (a) the party remitting the funds has acknowledged that the funds are deemed earned, (b) to cover actual expenses incurred in the processing of the transaction, or (c) the subject transaction does not close due to a breach or fraud by the applicant and the application or agreement clearly permits retention for these reasons. 3. We will communicate as soon as it becomes available to us all information germane to all third parties, funding sources, lessees, vendors and any others where the knowledge of any facts may impact any such party's decision regarding the transaction in any way. however, we will only communicate such information to the affected party, recognizing that we should not spread information to parties other than those affected by such information. 4. We shall respect the confidences of our customers, clients and business associates. Any information delivered to us with the expectation of confidence shall be kept confidential by us. At all times, however, we shall not use the shield of confidence to hide facts that are germane to keep a funder, broker or other party fully informed about a transaction. 5. We will never knowingly make false statements to anyone. Under no circumstances will we perpetuate, encourage or disregard fraudulent or inherently dishonest activity by any person in connection with an equipment leasing transaction. 6. When we are asked for legal, accounting, tax or any other professional advice, outside our profession, we will always advise that the individual we are speaking to should ask the same question of a duly licensed and qualified professional. 7. We will not make payments to employees or other agents of a supplier or funding source without the knowledge and permission of the supplier or funding source. 8. We will ascertain that all equipment has, to the best of our knowledge, been delivered before selling or assigning to any third party any lease transaction except where such verification is not required by a funding source prior to funding, such as in a pre-funding program. However, we shall cooperate with the funding source on all issues of delivery and acceptance of equipment as our funding sources shall require. 9. We will deal fairly with our funders in a manner which respects the value of their time and financial commitment. We will not request funding for any transaction if we do not honestly believe that the funding source would exhibit some level of interest in funding the proposed transaction in accordance with the funding source's programs. We will use our best efforts to submit proper and complete applications and documentation in accordance with the policies set by our funders from time to time. 10. In all cases where subsequent facts impacting the viability or legitimacy of a lease transaction become know to us, even if such facts become known to us after the funding of a transaction, but only within a reasonable time after the funding of the transaction, then we shall communicate that information to all parties known to us having an interest in that transaction. 11. In regard to our competitors, we will not seek unfair advantage by dishonest, unethical or questionable actions. 12. We will strive to enhance our professional competence and keep ourselves informed of all new developments in our industry. 13. We will respect the valuable proprietary nature of and relationships between brokers and their lessees and vendors and not circumvent these relationships except under terms which are agreed to in advance by all parties involved. 14. The use of the terms "National Association of Equipment Leasing Brokers", 'NAELB" and the NAELB "Logo" shall be used only by members in good standing on their letterhead and business cards in accordance with rules promulgated by the NAELB Board of Directors from time to time. In the event that any member becomes aware of the use of the aforesaid by a non-member, then such member shall immediately bring the usage by the non-member to the attention of the Board of Directors for further action. 15. All members of the National Association of Equipment Leasing Brokers agree to abide by and submit to the arbitration dispute resolution program administered by the NAELB and in effect from time to time. ------------------------------------------------------------------------------------- Fitch: US Commercial Finance & Leasing Companies -- Outlook Negative
NEW YORK--(BUSINESS WIRE)--March 16, 2001--The year 2000 will be remembered as one of the most tumultuous years ever for U.S. commercial finance and leasing companies. Fitch's outlook for 2001 considers lessons learned over the past year and the challenge the sector will face in an economic decline. "While it is not expected there will be the same level of adverse rating actions in 2001 as in 2000 as many management teams have returned to focusing on the core 'blocking and tackling' in their business. The obvious wild card is the industry's historically close relationship with gross domestic product. A prolonged economic slowdown in the U.S. could adversely impact current ratings," said Philip Walker, a senior director in Fitch's financial institutions group. However, good news from last year does exist. While specific companies dominated the coverage of the industry in 2000, investors should not lose sight that the commercial finance and leasing company sector remains in reasonably good shape in historical terms. Companies such as the CIT Group Inc. and Heller Financial Inc. had record years in 2000. They improved their market positions at the expense of companies that tripped up, such as FINOVA, or as certain banks exited the market. Going into this year, the buzz has been about deteriorating asset quality throughout the financial services sector. From a competitive standpoint, asset quality weakness may indirectly be a positive for the industry. The combination of bank consolidation, the slowing economy and an up tick in credit losses has caused certain participants to reduce their commitment to or exit the industry. With the reduction of credit providers, Fitch anticipates that better lending structures and more appropriate risk-based pricing structures to be more the norm than the exception in 2001. The following report, 'Commercial Finance and Leasing Company - 2000 Review and 2001 Outlook', is available on Fitch's Web site at 'www.fitchratings.com' or by contacting Market Services at 800/853-4824. ----------------------------------------------------------------------------------------- New York Times---After Nasdaq's Big Boom, Expect a Bust to Match by Ron Chernow Friday, March 16, 2001 NEW YORK Let us be clear about the magnitude of the Nasdaq collapse. The tumble has been so steep and so bloody - nearly $4 trillion in market value erased in one year - that it amounts to nearly four times the carnage recorded in the October 1987 crash. And the broader market continues to be dragged toward the abyss. A fierce, short correction in the technology-laden Nasdaq would have been more merciful. During the past year the market has exhibited the classic pattern of lethal drops: not big, swooping dives but a slow, relentless erosion of prices. While the Nasdaq still trades at lofty levels by historic standards, the bubble has mostly burst. The economic distortions left in its wake, however, will undoubtedly bedevil us for some time, as the boom's chief beneficiaries turn into its conspicuous casualties. At first, the most traumatic impact may be on American consumer spending. Economists note that rising stock prices translate into vigorous spending, and vice versa. As tech stocks boomed, people not only spent freely but dispensed with conventional savings, since their retirement funds soared even as they partied. Now, spooked by the plunging market, people are unlikely to count on stock gains for long-term security. Forced to rebuild depleted bank accounts and bond portfolios, they will scale back on consumption. This retrenchment will probably unfold on a grander scale than in any previous downturn. Back in the 1950s, many Americans, veterans of 1929, remained skittish about stocks, and only 5 percent owned them directly or via pension plans. Today an estimated 45 percent dabble in stocks, and the nation's nervous system is entangled in ticker tape. What happens to consumer spending when nearly half of all Americans see their stock portfolios savaged day after day? Much of the apprehension among Wall Street professionals must stem from a queasy sense of treading upon terra incognita. Many financial reforms of the past two decades presupposed that small investors could govern their financial destiny. By the late 1990s, mutual funds eclipsed banks as the major repository of savings. Many companies swapped old-fashioned pension plans, run by professionals, for defined contribution plans, controlled by employees. Touched by pre-bubble optimism, the Bush administration touts private Social Security accounts to enhance retirement savings. Now, after the Alice-in-Wonderland behavior of novice investors in the technology mania, this trend toward "democratized" investing will be questioned. To some investors it may seem poetic justice that their Wall Street mentors should share in the punishment. During the past generation many investment houses were merged into financial conglomerates that featured both wholesale operations, originating new stock issues, and retail brokerage chains, which pumped out these shares to small investors. This fusion of wholesale and retail firms produced glaring conflicts of interest. High-tech analysts wooed new companies to offer stock to the public, then pitched these profitless wonders to credulous customers. Meanwhile, an unholy combination of venture capitalists and investment bankers teamed up to fob off phantom companies - sometimes mere artists' conceptions of companies rather than going concerns - on the public. Investment banks booked record profits from dot-com initial public offerings and then from the huge mergers made possible by the exorbitant share prices. Wall Street firms grew to bloated sizes that will be no more sustainable than the Nasdaq bubble itself. Think of the stock market in recent years as a lunatic control tower that directed most incoming planes to a bustling, congested airport known as the New Economy, while a depressed airport, the Old Economy, stagnated with empty runways. The market has functioned as a vast, erratic mechanism for misallocating capital across America. In such an atmosphere, the little people of America, egged on by Wall Street's hired optimists, wrote blank checks to indulge the giddy fantasies of high-tech entrepreneurs. In the early stages this sparked robust expansion and innovation among software, computer, telecommunications, biotechnology, semiconductor and fiber optic companies. To many New Economy gurus, the pot of gold from Wall Street seemed fully justified and certain proof of their own genius. The cash windfall warped the judgment of chief executives. Intoxicated with capital, they expanded their companies too quickly and embarked on overly expensive acquisitions. Economic discipline was frowned upon as a decided lack of vision. The proliferation of Nasdaq companies ensured overcapacity in many high-tech markets, which spawned ruthless price cutting and caused profitability to plummet. Look at any financial or high-tech center, and you will see that funny money from the Nasdaq flowed into local real estate, blowing up more bubbles. In their haste to establish brand names, dot-coms funneled Nasdaq money into costly advertising campaigns, providing a fleeting bonanza for media companies. The most serious glut may appear among the dot-coms' suppliers, like Cisco Systems and Sun Microsystems, which must compete against a secondhand market in their own Internet equipment - used goods auctioned off after the demise of dot-com customers. In despair, many investors now pray for divine intervention - that is, interest rate cuts by the Federal Reserve. During the bubble, many assumed that the Fed had considerately suspended the business cycle and acquired magical powers over stocks. Alan Greenspan was transformed from an aging, if competent, bureaucrat into the all-powerful Merlin of finance. The last casualty of the Nasdaq bubble may well be the Fed's aura of invincibility. After a speculative boom, policy options become terribly limited. Almost without question we will see more interest rate cuts at the Fed's March 20 meeting. But an easy money policy, however necessary and welcome, will not remedy the structural imbalances produced by the bubble. Last year, the Nasdaq boom soared to unprecedented heights. If history is an accurate guide, the bust will mirror the boom in depth and duration. The writer is author of "Titan: The Life of John D. Rockefeller Sr." and is currently writing a biography of Alexander Hamilton. He contributed this comment to The New York Times. ----------------------------------------------------------------------------------- We reported in a brief paragraph that American Express is offering to its members free ISP. This may give them the benefit of banners and advertising direct, for their "products," including leasing to businesses. Online.com story -- American Express is testing the waters for a full-scale launch of a free ISP for U.S. card holders. The service, called "American Express Online," has not been officially announced, and is currently available only to PC users in the U.S. The service could be made available in Canada and for the Macintosh platform, depending on customer response, according to the company's Web site. The offer includes free, unlimited Internet access, 24-hour customer service, a Web-based e-mail account, and 5M bytes of Web space. Cardholders can download the installation program from the AmexOL.net Web site or request a CD from the company. There is a waiting period for the CD version, according to a recorded message on the service's support line, which cites overwhelming response as the reason for the wait. Free DSL: All talk, little action? The service comes as other companies, such as BlueLight.com and AltaVista's 1stUp, have either put limitations on free ISP offerings, or shut them down because they don't make money. "I'm sure American Express will be trying to push users of the service to certain sites, and trying to sell 'above the fold' advertising to sponsors," said Charles King, senior industry analyst with Zona Research. Most free ISPs have also been changing their business plans quickly to find a successful version, he added, mentioning Juno Online Services and AT&T. "Juno is not really trying to get out of the business, but certainly cutting back on what the company offers, and now AT&T has announced their '7/7' plan, which offers unlimited access for $7 per month," King said. AT&T's plan is subsidized by banner ads. American Express could not be reached for comment on how many users had signed up or when an official announcement about the service will be made.
|
|
