Bandwith is one thing, but using the Internet with Push Technology is another. Just think....if you use the Internet between 11 and 22 hours a month, your IS Provider is probably starting to lose money. I myself along with many here probably use the Net over 30 to 40 hours a month. With that said, it will be a disaster for ISP's and online providers and flat rates will be changing for most.
So the question arises, how could an entire industry including FNET make a mad dash to embrace a strategy (19.95) that is so clearly self-destructive.
In hindsight, what happened is that a game of follow the leader turned into a possible death march for many ISP's. Within the next 4 to 5 years, most feel that the 3000 to 4000 ISP's that are here now will drop to about 500 and some feel it dropping to about 100.
If your using the Push Technology (which thousands more are daily) such as Point-Cast and many more month, then your not only sending a death card to your ISP, but your sending a loud voice that the $ 19.95 days are soon to be over. The ones that do survive will be the ones that write off access charges as a break-even proposition and concentrate on developing new revenue streams (FTEL/FNET) hehehe... :)
Our Internet grazing has turned into a around-the-clock-feast for alot more now.
So, the bottom line here is that if your not a well diversified Internet Provider? You not going into 2001 and beyond.
I remember an article on PSINET, that saw the danger in consumer Internet pricing "early" ad did something about it. They got out of the consumer Internet market altogether. PSINet sold off its consumer Internet business to MindSpring Enterprises. It now focuses on exclusive Internet Service to *"businesses"*. NetCom now is not accepting 19.95 and has raised its starup price to $30.00 a month.
Its funny how NetCom started it sometime last march and now this.
I just started a new 6 months with FNET, and still got the price for 19.95 for 6 months, without the web page. But my gut feeling is that the hardware/900 service to mostly business and low overhead at FTEL will provide a substancial profit for FNET in the future.
We know that some ISP's won't spend the money and are leasing network capacity from other Internet providers to keep operating cost low. FNET on a daily basis is also shopping for the best line rates with all the carriers. MCI / SPRINT / and others. Shoptilyoudrop. No! Shopsoyoudon'tdrop. ggg
The diversity of FTEL/FNET, they may be one of only a handful that can keep their prices below the other majors (and will be one of the 100 to 500 left) as soon as prices start to rise, "prices will rise very soon".
Wouldn't that be great in a year or so to see FNET at 20 bucks or so, still making a profit, stealing accounts from others who have had to rise because of infrastructure prices, including hardware. ggg
I remember the article mentioned here about MindSpring and EarthLink because they don't have the startup costs that others have to deal with, they also buy capacity in bulk from backbone providers. That strategy works now, but it could become less attractive as the big ISP's begin to move away from their own flat rates for bulk capacity and start charging usage-based fees. That'l make the cost go up.
Wait til FNET offers all thats in the FNET business plan, what will that be worth.
***Its the value added services that will be able to command a premium price.*** |
