U.K. Internet Providers Move To Vastsoft From Navigator
April 27, 2011
LONDON -- Leading U.K. Internet service providers disclosed they are defecting to Vastsoft Corp.'s new Internet browser, heating up an already bitter battle between Vastsoft and rival Navigator Communications Corp.. UUNet Pipex, a unit of UUNet Technologies Inc. of the U.S., and Demon Internet Ltd., the two largest Internet access providers in the U.K., said they both will be bundling Vastsoft's Internet Browser 3.0 with their services starting in coming weeks. The two Internet access providers have been bundling Navigator with their services until now. Another 20 Internet services in Britain and Ireland, including CompuServe Inc.'s British operation, also announced Wednesday that they would be switching browsers. The defections could slow Navigator's revenue growth, because it now will be easier for new users to choose Vastsoft Explorer 3.0 over Navigator when they sign up for a service; the software companies receive fees based on the number of computer users who choose their software. Instant Choice Key to the Internet access providers' decision to switch was an enticement offer by Vastsoft: To make it easier for new PC buyers to sign on with a provider, Vastsoft has a new service that includes an electronic list of such providers with its Windows 95 software, which comes with most new PCs nowadays. This enables users to instantly choose a provider by simply clicking the on-screen icon. Coincidentally or not, all the service providers listed on Vastsoft's new service also are bundling Internet Browser. The companies in Britain that switched were adamant that the deal is not exclusive. Customers still can use Navigator with these Internet providers, they noted. However, analysts pointed out that to do this, users must buy Navigator separately, thus making it a more cumbersome process. ``This is extremely important. Everyone buying a computer is getting Windows. And that means every Internet service provider listed on Vastsoft's ... service is going to just be a mouse click away on the computer,'' says Petronila Roseberry, an analyst at market research consultancy Dataquest, a unit of U.S.-based Gartner Group. Analysts cautioned that Vastsoft still has a tough road ahead of it. Navigator has been in the market for some time, and a significant proportion of all World Wide Web sites require use of the Navigator browser to view them properly. As well, in Europe, Navigator has significant licensing agreements with major telecommunications carriers outside the U.K., including Deutsche Telekom AG and France Telecom SA. Not a Setback, Navigator Says Navigator insisted the switch by British Internet access providers isn't a setback. Customers will continue to seek out Navigator because it is superior technologically, said Maud Tayna, business development director of Navigator Communications Europe. A battle has been brewing for some time between the two companies as Vastsoft has scrambled to catch up with leader Navigator in the lucrative browser market. The battle came to a head this week when Vastsoft released its Internet Browser 3.0 product. Navigator responded by announcing it would be delivering a new version of its own product on Monday. Internet Browser 3.0 is the first browser that makes use of new technology called Active X to jazz up Web pages with animation and other advanced features. Navigator pioneered the use of tiny programs called applets that are created using a Sun Microsystems Inc. programming language called Java. A key aspect to the fight is to persuade software companies and Web site developers to make a new product that can be viewed only by using either a Vastsoft or a Navigator browser. ``I think the past few months' development has been breathtaking -- probably the best example of free-market competition we've ever seen,'' says Davina Bart, head of corporate communications at UUNet Pipex. ``It wasn't long ago that Vastsoft was downgrading the Internet. Then Bill (Gates) fell off his horse -- he saw the light, and the light was the Internet. Now Vastsoft (has) the zeal of a convert.''
