Minitel - Business Model

Business Model

Millions of terminals were lent for free to telephone subscribers, resulting in a high penetration rate among businesses and the public. In exchange for the terminal, the possessors of Minitel would not be given free "white page" printed directories (alphabetical list of residents and firms), but only the yellow pages (classified commercial listings, with advertisements); the white pages were accessible for free on Minitel, and they could be searched by a reasonably intelligent search engine; much faster than flipping through a paper directory.

France Télécom estimates that almost 9 million terminals—including web-enabled personal computers (Windows, Mac OS, and Linux)—had access to the network at the end of 1999, and that it was used by 25 million people (of a total population of 60 million). Developed by 10,000 companies, in 1996, almost 26,000 different services were available.

Minitel allowed access to various categories of services:

• phone directory (free)
• mail-order retail companies
• airline or train ticket purchases
• information services
• databases
• message boards

The development of Minitel spawned the creation of many start-up companies in a manner similar to the later dot-com bubble of Internet-related companies. Similarly, many of those small companies floundered and failed because of an overcrowded market or bad business practices (lack of infrastructure for online retailers). The messageries roses ("pink messages", adult chat services) and other pornographic sites were also criticized for their possible use by under-age children. The government chose not to enact coercive measures, however, stating that the regulation of the online activities of children was up to parents, not the government. The government also enacted a tax on pornographic online services.