The company was founded in 1998 as a project between
Dixons Group plc and
Leeds-based hosting provider
Planet Online to provide free Internet access to customers buying new home
PCs from
Dixons stores. The concept was the brainchild of
Ajaz Ahmed BEM who was an employee at Dixons at the time. He grew frustrated of not being able to get online without technical know-how and so sought about a better way for PC owners to get online. Initially the concept was called Channel 6 and was between Packard Bell and Planet Online. Packard Bell pulled out and Dixons (who resold their PCs) stepped in as joint partner. Freeserve was one of the first of the UK's ISPs to dispense with the usual monthly subscription fee for Internet access, and instead to collect a proportion of the standard telephone line charges. This made it more appealing and affordable to the masses and paved way for more people gaining internet access in the UK. (At the time virtually all Internet access in the UK was by
dial-up access via
BT lines.) With Freeserve however each customer had 10 megabytes of webspace, and could split the email address into as many names as desired, using a simple extension of the normal email naming protocols (
user@freeserve.co.uk could subdivide into email for
dad@user.freeserve.co.uk and
mum@user.freeserve.co.uk etc.). At the time, not having a standing charge for such a comprehensive service, especially the webspace, was a radical step. Further revenue was obtained from advertisements on Freeserve's
homepage, which was set as the default page in the customers' web browsers upon installing the Freeserve connection software. BT sought to challenge Freeserve's business plan by arguing that under the regulatory model (known as Number Translation Services, or NTS), it should receive more money for each call, and in January 1999
Oftel announced that it would carry out a review. Freeserve floated on the
stock market in July 1999 (as Freeserve.com plc), at which point it had approximately 1.3 million subscribers and was valued at between £1.31 billion and £1.51 billion. By September 2000, Freeserve had more than two million active subscribers. This was vastly more than the incumbent telephone provider BT, something that was unique for a European ISP. Freeserve was bought by the
France Télécom-owned company
Wanadoo in 2000 for £1.65 billion. Freeserve began to trial the emerging ADSL broadband service in early 2000. The original equipment supplied was a rack-type hard-wired modem and a separate router. A year later, the supplied end-user equipment was just a small USB-based modem, the Thomson
SpeedTouch 330 (previously known as the Speedtouch USB). Later, as Orange, they supplied a wireless ADSL modem router, the Orange-badged Siemens SE572, with one Ethernet port. ==Successive rebrandings==