Free with a Rebate

During TechEd, I heard a story about a certain University, that runs Exchange. During the time that they ran Exchange 5.5, all of the clients were IMAP4 clients and they limited email to 4 MB (it might have been 5MB). Very few students, and very few faculty members signed up for email.
They recently migrated from Exchange 5.5 to Exchange Server 2003 and increased their email retention limits to 50 MB. Still very few people signed up for the email.
University administration decided that they really wanted people to start using the University’s email so that the name would start getting out there. They did a huge campaign (well, not huge, but they did one) that encouraged people to support the school by helping to get the name out and they even offered $200 per person that signed up for their email service with the University. This campaign included all current students, faculty, staff, and alumni.
Did that help? 
Free with a rebate and still no penetration of the market… Now, what is wrong here?
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