Firms to Unveil CommerceNet, Market It as Computer World’s Home Shopping Network

A group of leading Silicon Valley companies are to announce today that they are bringing their version of the home shopping network to millions of users on the worldwide computer network known as the Internet.

In what is seen as a major attempt to commercialize the ad-hoc network, the companies are launching CommerceNet, allowing users to buy computers, scan catalogues and bid on contracts.

“This is going to be an electronic marketplace emanating from Silicon Valley,” said Steve Harari, president of Enterprise Integration Technologies Corp. who is acting as the network’s project manager.

CommerceNet is backed by $12 million in seed money, including half from the federal government, and has attracted such companies as Apple Computer Inc., Sun Microsystems Inc., Lockheed Corp. and Bank of America, all of which are based in or near the Bay Area.

The Internet is a 20-year-old collection of computer networks from around the world that was once the preserve of advanced computer users.

It now attracts a variety of personal computer users--about 20 million of them. The network is increasingly cited as either a forerunner, or the future backbone, of the so-called information highway.

It is envisioned that consumers will shop for thousands of products at home or the office by scanning huge databases with a computer.

Montgomery Securities analyst Betty Lyter predicted on-line shopping will be a major draw for consumers and companies.

“Opening an outlet on an electronic shopping service would be analogous to setting up shop at the local mall,” she wrote in a report.

While a number of the networks are still very much in the planning stages, the Internet is up and running and has a rapidly growing and relatively affluent clientele.

Harari said the potential for the commercial network is enormous. “We’re not sure how it’s going to evolve. It could include everything from pizza parlors to real estate.”

He said he expects the service to be backed by 50 to 100 companies by the end of 1994. Companies offering services on CommerceNet will pay $25,000 a year for a high-level membership, but lower-priced memberships will also be available.

Internet users, after tiring of roaming cyberspace for more serious work, will be able to sign on to a special address to access CommerceNet. Once logged on, a computer user can scroll through various company directories.

Eventually, a user will also be able to employ special computer “agents” to help scan the database for the best computer chip or the latest sound board.

CommerceNet will make available a special computer program called Mosaic to help the average user navigate the Internet.

The system will also employ technology to scramble messages and other methods to ensure orders and protect credit card numbers.