Freeserve name to go: it's what they Wanadoo

Freeserve, one of the best-known names to emerge out of Britain's dot-com boom and bust, could soon vanish into cyberspace as part of a rebranding exercise.

Executives at the internet service provider are near the end of a five-month review of the Freeserve name and are thought now to be seeking a more "grown up" image.

Created by Dixons in 1998 and floated on the London Stock Exchange a year later, the company was bought in 2001 by internet company Wanadoo, which is part owned by France Telecom.

It is understood that early results of the review recommend that the Freeserve brand should be dropped and replaced with "Wanadoo" at a cost of up to £20m.

A Freeserve spokeswoman said: "All the branding is under review, but no formal plans have been made. The feeling here is that it is business as usual." She refused to say when the review would be completed.

If Freeserve plumps for a name change, an announcement is expected to be made in the new year.

A rebranding exercise is unlikely to affect existing customers' email addresses. Freeserve has 2.6 million UK customers and has spent millions building up its brand name, most recently with a campaign featuring 1960s hippies.

The company is also searching for a new retail partner after being dropped in September by Dixons. For five years, the electrical retailer had promoted Freeserve's products in its stores, including Currys, PC World and The Link. But Dixons signed a deal with AOL thought to be worth £100m over five years.

Freeserve already has distribution agreements with Lloyds Pharmacy, Littlewoods, Texaco and Orange phone shops. It is reported to have struck a deal in the last few weeks with Argos. The retailer, owned by GUS, will initially promote Freeserve in 150 stores but could roll it out nationally next year.