NEWS 17.03.1999: Oftel's recent decision to allow subscription-free ISPs to continue using the Number Translation Services (NTS) - the formula which allows for the carve-up of call revenues - was welcomed by ISPs. But what came as a bonus was the move to give ISPs, and the terminating operators they typically partner with, control over the retail prices end users pay, normally on a per minute basis.
It all means ISPs will soon have greater flexibility over what pricing models they can offer the consumer.
Andy Greenman, senior analyst at the Yankee Group, believes we will see "a number of multi-tiered options" being offered to the consumer, the result of which could be niche players securing different corners of the market.
For example, some operators will compete simply on cost; others will provide content-rich portal sites. Alternatively, there could be bundled services of subscription and dial-up charges for a set number of hours spent online.
17.03.2004: Did consumers want a free internet? Well, yes and no. Freeserve and other gratis ISPs sent the idea of a paid-for portal heading rapidly down the toilet, while the notion of a set dial-up charge for a set number of hours certainly gained traction in the early years of the dot-com boom, but as prices came down the option of unlimited access for around £15 a month appealed to surfers.
But the internet is certainly far from free. Despite broadband take-up still rising, consumers have seen the prices of broadband stalling rather than falling, according to figures from analyst firm Point Topic, proving that users don't always pick the cheapest option when it comes to the internet. Stalling, that is, until BT decided to hark back to the bad old days and offer cheaper ADSL but capped surfers' usage.
Meanwhile, AOL has revealed that its subscription-heavy model has been taking a battering as users shuffle off in droves to broadband suppliers. Cost was no matter, it seems - in 2003, the ISP lost 2.2 million dial-up subscribers, despite the fact that some of them even had free promotional accounts. When it comes to the internet, users may like free, but they prefer good value. And with access, good value, it seems, is in the eye of the beholder.
Comments
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1. anonymous
Free would be good if it is at least the speed of dial-up. However, there is dial-up and dial-up - speed varies enormeously from one ISP to another. I have 4 different ISP dial-up on my computer and use them accodingly to the time and speed I get - one of them is a subscription for a limited period of time every day (2am to 4pm) from Tesco and it is fairly good - most of the time the speed is quite high and I believe to get value for my money. I have had it for 2 years now. Out of hours, I use Tiscali or Freeserve dial-ups.
2. Gonzalo Talamantes
Users desire fatter pipes for less money and subscribers would take it for free if they could get it. Having Internet access at over 1 mbps opens up a whole new world. It is rumored that in Japan a user can get a 100 mbps connection for $25 american a month, China ranked second, the US was second to last and Europe wast dead last. Think of the implications if this is true.