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August 7, 2000
technology

Is free Internet service worth it? New study says "no"

IDC The most recent trend in the world of digital communication is the move to offer free Internet service. With these services, consumers can surf the Net for no cost, but companies offering this generate revenue through advertising displayed through the free software, CNET News reports.

The process at first appears to be a straightforward trade between convenience and access, but a recent study of free Internet Service Providers (ISPs) by International Data Corp. says otherwise.

While the company does state that the "Free ISPs Have Other Costs" report is based largely on just a handful of cases, it concludes that "free" isn't worth the hassle. In fact, IDC goes as far to say its more efficient for users to pay for Internet access.

The biggest problem is that free ISPs don't offer access quality even close to the level provided by their fee-based rivals. Problems include difficulty logging on, slow connection speeds, download issues and the number of pop-up advertisement windows that come with most free services.

Juno/NetZero However, representatives from free ISPs point out an important fact: without the ads, the service couldn't be free. Moreover, other independent analysts say the industry overall is experiencing normal growing pains as weak competitors are run out of the market, CNET reports.

These analysts also say the market for free ISPs will always appeal to lower income Net users, and could more than triple in size to 37 million people by 2005.

Larger companies such as NetZero are close to making a profit, and Juno Online Services said its active audience jumped by 330,000 in June to 3.38 million people.

Full text of the article is currently found at:
http://news.cnet.com/news/0-1005-200-2410733.html?tag=st.ne.1002.tgif.ni



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