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PC industry eyes emerging mkt with new payment plan

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CIOL Bureau
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SEATTLE - Microsoft Corp., chip makers and PC firms aim to increase PC usage

in the developing world with a new flexible payment program to lower the initial

costs of buying a computer, the companies said on Sunday.

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Microsoft, the world's largest software maker, said it is leading a group of

technology companies in offering the first-ever "pay-as-you-go"

computers in Brazil, India, Mexico, Russia and China over the next several

months.

Using Microsoft's FlexGo software technology, a customer can buy a computer

loaded with the Windows operating system then purchase prepaid cards or pay a

monthly subscription fee at a cost similar to using a computer at a local

Internet cafe, Microsoft said.

When the usage time ticks down, a customer can go online or to a local

retailer to buy more minutes.

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In an effort to replicate the success of prepaid mobile phones in emerging

markets, the PC industry aims to expand PC use in countries where consumers must

cope with a lower income and limited access to credit.

"We're working with all these partners to expand the market to help

bring PCs within reach for hundreds of millions of families within emerging

markets," said Will Poole, senior vice president at Microsoft. "As the

market expands, then we sell products and that's a good thing."

Microsoft's partners include Advanced Micro Devices Inc., Intel Corp., Lenovo,

Phoenix Technologies Ltd. and Transmeta Corp., but it aims to work with other

hardware companies, telecommunication firms, banks and retailers in emerging

markets.

The pay-as-you-go model lowers the initial costs of buying a PC by 50 per

cent or more and the consumer owns the PC after a set amount of minutes are

purchased, the companies said.

Microsoft and its partners recently completed its first trial in Brazil and

they plan to do a next round of trials in Brazil, China, Hungary, India, Mexico,

Russia, Slovenia and Vietnam, according to Microsoft.

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