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ISP AOL UK Inks New Deal With Dixons
By: MarkJ - 03 August, 2003 (9:39 AM)

Having failed to reach an agreement with BT over replacing UK ISP Freeserve in a key distribution (CDs etc.) deal, the high-street chain Dixons has now established a new arrangement with AOL UK:

The move ends one of the most profitable relationships of the dotcom boom, from which Dixons has made more than 600m.

The Telegraph revealed in June that Dixons had held secret talks with AOL and BT as part of a review of the long-standing joint venture under which Dixons, the UK's largest computer retailer, pre-loads Freeserve software on PCs sold in branches of Dixons, PC World and Currys.

The agreement, which does not cover broadband software, also includes joint advertising campaigns and in-store promotion. AOL will replace Freeserve in February 2004, although Dixons could announce the new deal within weeks.

The deal is rumoured to be worth around 10 million, a sum that Freeserve was apparently unable to compete with. More in The Sunday Telegraph newspaper.

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