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Technology Stocks : InfoSpace (INSP): Where GNET went!
INSP 89.94-0.8%10:37 AM EST

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To: brk who wrote (8643)6/27/1999 4:08:00 PM
From: Dany Tremblay  Read Replies (2) of 28311
 
I think that the difference is that 56k modems are a product (one time purchase)whereas fat pipes are a service (monthly cost). This may be why the grass roots movement isn't there.

That is an interesting distinction. But, regardless of what you call it, a service or a product, The industry is trying to get people who have just spend quite a bit of time and money to get Internet access to spend more. I've been using the Net for five years, back when there was only a couple thousand sites in the world. But most people has signed on recently. They are now paying for a new service they were not paying for just two years ago or so. And now that service could double? What would most people's reaction be if all of a sudden their cable bill would double if they decided to get 100x more channels. Most people would say, geez do I really that for twice the monthly fee. I'm guessing not.

On the other hand, if the customer was offered a huge increase in service/product for a marginal monthly increase (in the range of $3-$5), then they probably would take it because it would appear to be something they could fit in their bill load. My gut feeling tells me that fat pipes will only get to the masses once it can be had for just a few bucks more a month.

Rememer when AOL was $5/month for 5 hours with each additional hour over that billed at $2.95? Look back and think about how access exploded, litteraly, when AOL and others switched to $18/month unlimited. The service was right and so was the price. I think the masses are comfortable with a monthly Internet bill of about $20, but not $40ish. Maybe it'll be like computers (or VCR's or CD's or cellular phones for that matter) where the real enthusiasts will foot the bill for development and implementation, allowing the costs to come down. This will then bring the technology to the masses.

I guess I've convinced myself that that is my profile: Dany, Engineer, young parent, of the masses - marketing, put this guy on the back burner!
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