Another Free ISP Shuts Down

As if further evidence was needed that the free ISP business model isn't working, Hispanic niche portal StarMedia Networks today confirmed the closure of Gratis1, a company which offered free Internet access to the Latin American market.

by Ryan Naraine Senior Editor, atnewyork.com [January 11, 2001]

A company spokesperson told atNewYork that Gratis1's free ISP service was forced to shut down after another backer, Internet holding company CMGI, pulled the plug on 1stUp, a technology platform that hosted Gratis1.

"Gratis1 lost its primary tech platform when 1stUp closed operations. That [closure] did not affect our business, personnel or services in any way," the StarMedia spokesperson said.

Starmedia said it has no immediate plans to find a new technology platform for Gratis1. In the meantime, the spokesperson said StarMedia would continue to focus on providing content for its Latin American audience. "Our focus is not on providing Internet access. That was basically an investment on the outside," she added.

A major player in the Hispanic niche content space, StarMedia was hoping to attract users to its portal through the Gratis1 investment and intended to make the ISP a valuable, advertising- and ecommerce- supported business.

The Gratis1 service was first launched in Sao Paulo, Brazil, and later expanded throughout Brazil, Argentina, Mexico, Colombia, and Chile.

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