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[January 16, 2006]

Microsoft develops prepaid computer

(BNamericas.com Via Thomson Dialog NewsEdge)US IT giant Microsoft (Nasdaq: MSFT) has partnered with Brazilian retailer Magazine Luiza to develop a "prepaid" model for selling computers to Brazil's low-income population, reported Brazilian newspaper Folha de S.Paulo.


In 2005, Microsoft Brasil and Magazine Luiza sold 1,000 machines in four days during tests. In March, the companies will have a further test with the aim to launch the prepaid PC in September 2006.

The PC, which functions similar to a prepaid cell phone, is sold for a low value - in tests a price of 799 reais (US$351) was chosen.

The consumer buys prepaid cards with credits to use the PC and the machine becomes "free" once a certain amount of credits have been paid.

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