STRATEGIC PARTNERS
Evergreen Teller Services plans to drive widespread acceptance of public Internet terminals by offering them at a low price. Hey, it worked for ATMs.by Ann All, editor
June 19, 2000
Daniel Pina, president and CEO of Evergreen Teller Services, predicts that public Internet terminals will become just as ubiquitous as the ATM. He's so sure of it that his Grass Valley, Calif.-based ISO is already making plans to deploy up to 500 Internet kiosks, or "Public Internet Tellers," at about 60 sites around the U.S. "We've been focusing all of our efforts on the Internet for the last year," Pina said. The first sites will be at existing Evergreen locations. Evergreen recently partnered with CAIS Software, which will provide Internet access software and services and monitor and manage the terminals from its operations center in San Diego. An unnamed manufacturer is producing the hardware for Evergreen. Compared to an ATM, the possible revenue streams for an Internet kiosk are practically limitless, Pina said. "With an ATM, you've got maybe a couple of coupons, a couple of screen ads and mostly revenue from fees. The Internet kiosk can help offset some of the costs of ATMs on the market today." In Evergreen's business plan, kiosk users will pay for blocks of Internet time in one of three ways: with cash, with a credit card or with a Public Internet Teller card issued by Evergreen. The cost will be $2.50 for 10 minutes with a credit card and $1.50 for 10 minutes with the Evergreen-issued card, Pina said. Those using cash will pay $2 for 10 minutes. The primary user, Pina believes, is likely to be a person with limited income and no other means of accessing the Internet. "It's the person who can't afford to pay $1,000 for a PC or sign a contract with AOL," he said. While most deployers experimenting with the Internet intend to restrict user access to only a few sites, Pina wants to offer a largely unadulterated Web experience. Evergreen will offer software that blocks access to sites with adult content, however. Rather than merging the ATM and the Internet kiosk into one unit, Evergreen will market three terminals that can be deployed separately or all together: a kiosk, a prepaid products dispenser and a traditional ATM. It's all about offering the customer choices, Pina said. "You've got to look at it from a retailer's perspective. They've already been sold a $7,000 to $10,000 unit -- it won't break down, and it's paid for," he said. "They're not going to take a trade-in when they can just put in another unit and run it side by side." The kiosks will feature stainless-steel construction, a 16-inch color screen and choice of either a touch screen, keyboard or touch pad. They will be branded as "e-Station Public Internet Tellers" and also carry Evergreen's "Teller Quick" brand. The main differentiating characteristic, however, is the price. Unlike more expensive Web-enabled terminals produced by manufacturers like NCR and Diebold, Evergreen's machines will be priced at about $10,000. Pina thinks the low cost will help drive acceptance of the kiosk concept. Recent history may prove him right; manufacturers certainly sold more ATMs when they lowered the price. "There's no way the retailers or ISOs we normally sell to are going to sign on the dotted line for a $40,000 or $50,000 kiosk," he said.
