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Technology Stocks : InfoSpace (INSP): Where GNET went!
INSP 89.89+8.0%Nov 21 9:30 AM EST
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To: Steven R. Michaud who wrote (11579)8/26/1999 3:10:00 PM
From: Technologyguy  Read Replies (2) of 28311
 
People pay (and will continue to pay) for fast access. I pay $39 a month for cable modem access and would pay $100/mo--it's that much better for the frequent home/home business user.

What is in big, big trouble are the ISPs, such as AOL, that depend very heavily on $21.95 a month per customer. AOL is already seeing erosion of customer share in both places that have significant high-bandwidth opportunities (DSL and cable) and in places that have lots of free access (like Britain). They are being squeezed from both sides--on quality (cause that what fast access is about) and price. Tough business to be in now and especially in a few years.

I would much rather be a high quality content and services provider dependent upon e-commerce, subscriptions and advertising (such as GNET) than an Internet Services Provider in the future. Obviously, AOL is both of these right now, but increasingly anything that can be found in the AOL-only space (content, messaging, commerce, chat) can be found on the Net. If the low-bandwidth access is free and if AOL is not a significant player in high bandwidth access AND great content, commerce and community are available freely on the net, then what becomes of AOL's business model? In the long-run, who will put up with $21.95 for low-quality access and irritating pop-up ads?
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