Invention and development In 1970,
Samuel Fedida, a
research engineer who had worked at
English Electric and a US
consultancy company, joined the
Post Office as head of the Computer Applications Research Division. Within a year, he had completed the initial design of a
viewdata system (the generic term in use at the time) for the general public: it would comprise information stored on a central computer accessed over the public
phone network using modified televisions as terminals. By early 1973, the Post Office had decided to develop an experimental system, and was working with the
BBC, the
Independent Broadcasting Authority, and
standards organisations to develop compatible standards for
teletext and viewdata. During 1974, it decided to commercialise the viewdata concept. where Fedida presented a paper on the technology and the potential appeal, as the Post Office saw it, of a public interactive information service. Further demonstrations followed, and based on the favourable reactions of TV manufacturers and potential providers of information and services, the Post Office decided to run a pilot trial. The two-year pilot service began in January 1976. Interviewed by
The Times, Fedida was quoted as saying that the
Post Office saw viewdata playing several roles: as a "centralised information source", an "intelligent interface" to specialised scientific and technical data, a "communication machine" for passing messages, a personal information store, a new information distribution medium, a "channel for education in the home", and as providing an "advanced calculator service". the
Post Office launched a test service of Prestel, as it was now called, in October 1978. At the end of December, there were 95,500 information pages, growing at a rate of 3,500 per week, and just over 300 users, increasing by 3050 per week. By February 1980, there were 131 IPs and 116 sub-IPs. The Post Office categorised the IPs as follows: national and local newspaper groups; magazine and other publishing groups; central government departments, and other agencies (such as the
British Tourist Authority and the
British Library);
nationalised industries (including
British Airways,
Sealink, and
British Rail), and companies in other fields of business, such as banks and travel agencies; new companies set up to exploit the viewdata medium, and those expanding from an existing base of online services, such as
Reuters; associations; software companies; and miscellaneous. and the
Consumers' Association. Overall, popular topics included games, quizzes, jokes, and horoscopes; the
Stock Market, company information, and business news; travel and holiday information; national news, sports, and "What's On" locally; cars; and consumer advice. Writing in the winter 1980/81 issue of
British Telecom Journal, Prestel's public relations manager stated there were over 7,500 sets attached to the system, 170,000 frames in use, and more than 400 IPs and sub-IPs. By the end of 1981, according to Butler Cox, a
management consultancy, Prestel had 2,000 residential and 11,000 business users, with 14,000 "terminals" in use. The service was within local call reach of 62% of phone subscribers in Britain. IPs numbered 153, with 593 sub-IPs. Users accessed 190,000 frames per day, and the average time on the system, for each user per day, was 9 minutes. There were 193,000 frames available, including 2,000 response frames.
Prestel Gateway March 1982 saw the launch of the Prestel Gateway service. This enabled users to connect, via the Prestel network, to external computers operated by IPs or other companies. Travel agents, for example, used Gateway to connect to
tour operators' systems and make reservations. By October 1982, the online usage charge had risen to 5p per minute (8 am to 6 pm Monday to Friday and also 8 am to 1 pm on Saturdays, free at other times), the business standing charge to £15 per quarter, residential users now paid £5 per quarter, and jack installation cost "from £15", with a 15p quarterly rental fee. under page *656#, Prestel's publicity department published a "Factframe" showing, at the end of each month, the average number of terminals attached and the respective percentages in businesses and in homes; the number of frames available and the number of frame accesses per week; and the number of messages sent per week. Actual subscriber figures were not published; Thomas et al. (1992) suggest these were "significantly less" than the number of terminals, as "businesses were assumed to 'attach' more than one terminal", and note that British Telecom stopped publishing figures at the end of 1988. In September 1982,
The Times reported there were 18,000 users, of whom 3,000 were residential. Noting that British Telecom had originally forecast 50,000 users at this point, the report went on to outline a new approach to attracting them, quoting senior managers from British Telecom and the head of a
joint venture. The plans involved the introduction of a home banking service; the marketing of a Prestel adaptor for computer terminals to the business and higher education sectors; and the launch of
Micronet 800, a service for microcomputer users. Six months later, in February 1983, the same newspaper recorded 22,400 users, of whom 15% were residential, writing that the future of Prestel "could be in doubt by 1985 if it is not approaching profitability." In mid-1984, the UK
Department of Trade and Industry issued a booklet stating that the availability of travel information, the launch of
Micronet 800, and the provision nationwide of the messaging service, Mailbox, had contributed to a rise to 45,000 attached terminals by June of that year. 61% were in businesses, and 39% in homes. In that month, on average, the Prestel database contained 320,000 frames that were accessed 14.6 million times. 17 Prestel Gateways to external computers were in operation. For July, the Butler Cox
consultancy recorded 47,000 users (60% business, 40% residential), and a total of 1,200 IPs and sub-IPs. In mid-1985,
The Times stated there were 53,000 "terminals, adapted televisions, microcomputers or specially designed units" attached to Prestel, with residential users now accounting for 45% of the total. In the reporter's view, this represented "a change of fortune for [a service] deemed commercially dubious by many commentators." The figure of 65,000 was reached at the beginning of 1986about a third were
Micronet 800 subscribers. Prestel had reportedly traded at a profit from the previous October onwards. Commenting in September 1986 on what it referred to as "only 70,000 users ... growing at a rate of ... a few hundred customers a week",
The Times declared that Prestel "had failed to live up to expectations", comparing it unfavourably to the French
Teletel videotex service and to British Telecom's own
Telecom Gold electronic mail service. Earlier in the year,
The Guardian had also praised Teletel, asking "Can Prestel be improved or should we just scrap it and start again?", and questioning whether a scrolling, text-based system, such as
CompuServe's, was in any case preferred by most consumers over page- and graphics-orientated videotex services. Writing in
The Guardian just before Christmas 1988,
Jack Schofield reported that Prestel "had become reclusive" about user numbers, with the Factframe, "[a]fter prompting, ... finally updated this summer ... claim[ing] 90,000 users", while the figure of "only 75,000" was being quoted by the British Telecom manager responsible for the service. In January 1989, drawing on what turned out to be the final Factframe, published at the end of 1988, Schofield wrote that "After ten years, [Prestel] has yet to achieve the number of users it expected to get in its first year", quoting a figure of 95,460 terminals attached. Membership had decreased from a peak of around 20,000.
The Times agreed, and also pointed to a steep rise in subscription charges, opining that "BT's failure to provide even this committed group with an economic ... service means that Prestel is destined ... for businesses." The closure in April 1991 of Homelink, the
home banking service launched in 1983 by the
Nottingham Building Society, also contributed to shrinking the number of Prestel subscribers.
Closure British Telecom closed Prestel in early 1994, selling it to a
consortium. It was rebranded as "New Prestel", focusing on the provision of financial data to businesses. In 1999, the financial data component of Prestel On-line was bought by the company Financial Express to become "Financial Express Prestel". The service component merged with the ISP
Demon Internet, which ran a "Prestel Internet Service". This closed in 2002.
Noll contrasted the "relative failure" of Prestel with the "success" of
teletext, noting that receiving the latter was free and its database much smaller. This latter view was also held by
Mosco, a
political economist, who wrote in 1982: "[T]he British government appears to be prepared to let Prestel sink or swim on its own commercial ability ... It is too early to offer a complete assessment of Prestel. However, the direction of development is clear: the need for immediate commercial success means cutting back on earlier mass marketing efforts and an emphasis on specific business uses." In a paper published shortly after Prestel had been discontinued in 1994, Case, an information scientist, examined the motivations behind the development of this and other videotex services from a
sociological perspective. In his view, "[E]xplanations of videotex require consideration of higher-level phenomena [such] as policy,
ideology, belief, and vision". He identified the envisioning of videotex as a facilitator of mass participation in an emerging
information societya belief held and promoted by many politicians,
futurists, sociologists, and business leaders in the 1960s and 1970sas a crucial spur to the development of the technology, sustained investment, and the roll-out of services. Regarding Prestel, Case summarised the problems it faced (as described by a former chief executive) as the lack of a trigger service, low-quality information, complicated charges, competing services, and uncoordinated marketing by IPs,
British Telecom, and terminal and adaptor providers. He cited the control over content exercised by IPs and the system operator,
British Telecom, ==Database==