Gateway said the programme still allows customers to choose customized equipment, but with no down payment and monthly payments starting at $49.95.The plan also includes unlimited Internet access for customers choosing Gateway's Internet access service.

Under the plan, called Your: Ware, buyers can also upgrade all or part of their systems after two years and get average wholesale prices for the replaced part or system.

"When you look at people considering the purchase of a PC but are on the fence, about 75 per cent are hung up on price, usability and fear of obsolescence," company President Jeffrey Weitzen said in an interview.The North Sioux City, S.D.-based company, which like Dell Computer Corp.

sells computers direct to customers and configures the systems to buyer specifications, said it will alsobroaden its software bundling options.

Available packages will include standard applications like word processors and spreadsheets, for example, or be tailored to targeted categories like education or games.

Unlike Dell, Gateway has embarked on a retailing initiative, opening showrooms across the United States.