Internet Appliances:

What they are and why you might and might not want one

A Review by: Melissa Linn

An Internet appliance can be defined in different ways by different user groups. If a manufacturer is targeting its products toward companies who have internal servers and large computer networks, the products may vary from inexpensive extra storage to security systems that protect the company information. The Internet appliance intended for the general public is advertised on TV or the Internet and is an entirely different product. These appliances help the average household connect to the Internet without the hassle of dealing with a personal computer or allow mobile connectivity. The home Internet appliances and mobile devices that allow the average consumer to connect to the Internet and send and receive email are the products that this review will focus on.

A generalized definition of a home Internet appliance, sometimes called a network computer, is a small, low-cost, simple device that connects to the Internet without the complexity of a personal computer. The purpose of many network computers is to surf the web and use email. A network computer's competitive advantage is its simplicity and low-cost. Many of the home appliances are configured to connect with a specific Internet service. Frequently the appliance is not the money-making part of the business. More often than not, the long-term service commitment is the money-maker for the company. They are sometimes willing to sell the appliances at a loss to get the service commitment. There are many different kinds of devices and services to meet individual needs.

Different devices work with different standards. Some use the same Internet standards as personal computers called HTML (HyperText Markup Language) and HTTP (HyperText Transfer Protocol), while others use modified versions of HTML and HDML (Handheld Device Markup Language). Some Internet appliances, especially the non-mobile appliances are configured to work only with the service's standards and service. Therefore, once some Internet appliances are purchased, the user is committed to that service for the life of the product. Most wireless phones work only with the wireless service to which the user subscribes; and the phone will work only with the Internet service that the wireless service promotes.

In comparison to a personal computer, an Internet appliance has very little hardware. In most instances there is no hard drive, floppy drive, or CD-ROM. This means that all files and applications must be saved in the non-volatile memory. Without the network connection, these home appliances are useless. Some Internet appliances may have minimum storage space to assist with caching files. This can significantly speed up the downloading of files and decrease the strain on the server. A bonus of having Internet appliances is that the users never have to worry about updating their system. All updates are done on the server which also means the user is likely to have the most up-to-date software. On the other hand, if the server goes down or the provider goes out of business, the user has a useless appliance.

One serious problem with Internet appliances is users don't chose the software and don't realize that many typical activities that require Java, JavaScript, Adobe Acrobat, or Real Media can't be used. Therefore, some activities can't be accomplished on the Internet appliances such as choosing airline seats or playing some video clips or even looking at some files. As a result, those who choose some Internet appliances are choosing limited access to Internet resources. There is also a question about the security of the servers with some Internet appliances. This could mean that an Internet appliance owner might not be able to shop on the Internet safely, one of the fastest growing uses of the Web. Many of the mobile appliances do advertise secure servers.

The cost of owning an Internet appliance is somewhat relative. The time, energy, and frustration costs of an inexperienced user trying to use a personal computer must be weighed against the monetary costs. For some users, ease of use is more valuable than cost over time. The appliance and its associated monthly fees can exceed the monetary cost of a personal computer over time. While some products that connect to a TV may only cost around $200, other devices such as personal data assistants and wireless phones are generally purchased for other reasons than specifically Internet access and users just pay an additional cost for the Internet services. Personal digital assistants can cost a user as much as $300-$400, which is more than many home Internet appliances; however, personal digital assistants have offline benefits.

What users of network computers and TV-related products must decide is whether the cost of their Internet appliance is worth its disadvantages. A cheap personal computer can be bought for about the same price as many of the products. In the Information Age where children now learn how to use personal computers in school and where Internet services may cost nothing or may be purchased for as little as five dollars a month with no long term commitment, is the simplicity of an Internet appliance better than having office software, games, and hard drive space? For those individuals with no computer experience and no need for additional software, the answer might be yes, but the answer for many others is probably no.

There are some differences between the mobile devices such as phones and personal digital assistants and the stationary network computers and TV-based appliances. The mobile appliances must be able to work online or offline. Problems include small screens with only limited space for text, a limited number of sites a user can access, and awkward key configuration. These problems can make emails hard to read and send as well as create great difficulty in getting important information in an emergency. The initial novelty of using the Internet in the car on a wireless phone quickly diminishes with the restricted Internet access and difficulty in reading emails on a small screen.

Let's look at some of the most popular Internet applianes in use today:

Web TV (www.webtv.com) was one of the first home Internet appliance and is one of the most well-known. Owned by Microsoft, it provides three main services and several different receivers which provide the variety that consumers look for today. The receiver which is connected to a TV and a phone line will cost between $100 and $200 depending on which of the three services a user chooses. There is also a monthly fee that varies from $9.95-$24.95. Users have the ability to choose their own ISP(Internet Service Provider). A keyboard is optional. Certain scanners and printers can be connected, but there is no hard drive to save information. Web TV provides support for secure servers and also reduces the cost of the service if you use your own ISP. There are two monthly fees for Web TV though, a fee for the Web TV service and a fee for the ISP. When deciding between a personal computer and Web TV, a user must consider the initial cost of the receiver and the on-going monthly cost of the Web TV service.

Netpliance (www.netpliance.com) introduced the i-opener in 1999 and is now partnering with AT&T and Earthlink to provide the Internet appliance and Internet service. Both ISPs will provide the appliance for $299 and require a $21.99 monthly fee. The appliance must be obtained from the ISP and not Netpliance. The i-opener has a 10 inch LCD screen, a keyboard, and a built-in mouse. The i-opener like many other Internet appliances has no internal storage space. All maintenance and software updates are done at the server which means little hassle for users. 20 users on Epinions (http://epinions.nbci.com/cmhd-PDAs-All-Internet_Appliances) reviewed the i-opener with an average rating of three out of five stars. Some of the complaints included bad customer support, inability to view media, and dissatisfaction with the mouse on the keyboard.

Compaq (http://athome.compaq.com/showroom/static/iPAQ/intappliance.asp) has two versions of their Internet appliance called the iPAQ. The iPAQ requires the use of MSN as an ISP. The appliance has a 10.1 inch or a 15 inch screen and a wireless keyboard. iPAQ supports a secure server and one brand of printer. They also support Internet Explorer, Java, and Media Player. The price of the appliance varies from retailer to retailer, and at times, rebates make the appliance free. The MSN service is $21.95 per month. The iPAQ is a good example of a typical Internet appliance which provides access to only one ISP and decides what software the users can access. After reading consumer reviews on Epinions, it became apparent that many iPAQ users were older and enjoyed the simplicity of their Internet appliance. 6 of the 7 consumers rated the iPAQ with 4 or 5 stars with 5 being the best. The one complaint was that Compaq would not fix technical problems and the product was returned.

Cidco's Mailstation (www.mailstation.com/products/index.html) sells for $99.99 with a $9.95 monthly fee. This appliance can be used only to send and receive email. It can save up to 400 email messages. Mailstation uses the phone line to connect to the Internet, but there are limited access numbers and not all areas have one. For someone who just wants email and not the Internet, Mailstation might work well. Some Internet appliances that access the Internet and email can be purchased for the same cost. When looking at consumer reviews on Epinions, 6 consumers rated the product. Of those 6, 5 users rated the product with 4-5 stars with 5 being the best. The 6th review gave Mailstation 1 star because when the screen broke on her appliance, Cidco told her that there are no repairs and she would have to purchase a new unit. The rest of her review was positive.

The Palm VII (www.palm.com) series now offers Internet access. The Palm VII sells for $399. This appliance is Palm's first PDA that allows mobile Internet access and email. The Palm's Internet service has an initial set-up fee of $9.99 and several different service plans that depend on the amount of information you download, not the time a user spends on the Internet. The Palm VII uses HTML unlike wireless phones that support HDML. The Palm VII provides a bigger screen than a wireless phone and provides easier access to web sites and email because a stylus can be used instead of telephone-like keys. The Palm VII also uses web clipping instead of browsing which leaves out graphics and links that can slow loading of web pages. This personal digital assistant can cost as much as or more than a home appliance but provides mobility and quick access to specific information as well as serving many offline functions.

These products are just of few of the ones that are out there today. New appliances are emerging on a weekly basis. The wireless phones and personal digital assistants are developing newer models and faster Internet connections. The costs of Internet service are set by the different wireless phone service providers. Personal digital assistants are becoming closer to small laptops with wireless Internet access. Those personal digital assistants that allow users to save information, quickly and easily surf the Internet, and use email will have the competitive advantage.

Internet appliances for the general public have taken two roads. One is household use such as Web TV and iPAQ, and the other road is portable Internet access. They will most likely have two different fates. The personal digital assistants and wireless phone services are quickly evolving while the home systems are slowing down. Let's look at the reasons why they are taking two different paths.

Home Internet appliances are designed for those who don't want the expense or the hassle of dealing with a personal computer. While these may have been profitable products 10 years ago when computers were much more expensive and children were not taught in schools how to use personal computers, today Internet appliances are out-dated. Computers can be bought for only slightly more than the average household Internet appliance. In addition, ISPs can be found for free or as little as five dollars a month. An ISP can be found for a fourth of the monthly cost of an Internet appliance. This means that over the course of two years, a computer with a free or low cost ISP would match the cost of an Internet appliance and its Internet service thus negating the advantage of a low-cost appliance. With today's 24-hour technical support, Internet software updates, and better education about computers in schools, simplicity is needed much less today than even a few years ago. After reading the Epinions site, I have come to the conclusion that most individuals who own an Internet appliance and are happy with it are older individuals who aren't comfortable with regular email programs or personal computers and who aren't demanding all the extras that personal computers provide. Therefore, I believe that for the majority of today's consumers, home-based Internet appliances are out-dated and their once perceived advantages of simplicity and convenience are not what today's consumers are demanding. Within the next 10 years, the household Internet appliance will become obsolete unless manufacturers upgrade their services to provide lower costs, software comparable to a PC, and storage space making them almost equivalent to a personal computer.

The personal digital assistants and wireless phones will take a different road. Today, more than ever, individuals are on the move and need quick access to email and Internet information for office and personal use. Laptops are hard to pull out and boot up in a hurry, so wireless phones and personal digital assistants are the next logical tools for Internet and email access. They are providing bigger screens, touch screen technology, and wireless Internet access. Personal digital assistants specifically move closer to becoming mini laptops everyday. Wireless phones will have to overcome the problem of small screens and access to limited sites. An additional problem with wireless phones is the keypad that must be used to access the information. The keypad remains time consuming and awkward to use. If wireless phones do not address this problem, they too may become obsolete for Internet and email access with the growing use of personal digital assistants.

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Last Modified: February 5, 2001