No-Fee Net Provider Sets Up Shop in Southland

Internet service provider @Bigger.net, a company with a unique marketing approach but a checkered financial history, said it plans to begin offering Net access in Southern California markets today.

The struggling firm, which filed for bankruptcy protection in December, bills its Internet service as “unlimited access with no monthly fee,” meaning subscribers don’t have to pay the $20 or so monthly fees most Internet service providers charge.

But the San Jose company does charge a $60 setup fee and, unlike typical service providers, places an advertising banner on subscribers’ screens whenever they surf the Net.

The company launched its initial service in January 1997 in Northern California, where it now claims 20,000 subscribers. But it was forced to file for bankruptcy protection when new subscription charges tapered off and the company struggled to find advertisers.

Daniel Morales, who joined the company as chief executive officer one month after the bankruptcy filing, said @Bigger.net has obtained financing and is committed to its ad-based revenue model.

“We’ve gotten new financial support and we’ve turned this company around,” Morales said.

He declined to provide details about the company’s financial footing except to say that the Northern California business is profitable and that the Southern California service could survive for at least a year without any ad revenue.

Morales said the company has not lined up advertisers in the Southern California market and is focused on building its subscription base.

The rectangular ad banners, which the company says are 3 inches long and three-quarters of an inch tall, can be moved to any corner of the screen but cannot be removed.

Internet access is free after the initial $60 charge, but the company says it charges an additional $10 a year for e-mail accounts.