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Microcap & Penny Stocks : XSNI - X-Stream Network
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To: Tom Allinder who wrote (151)5/9/1999 6:49:00 PM
From: Glenn Petersen  Read Replies (3) of 3519
 
Some additional DD.

Here is a link to a listing of 66 UK ISPs that provide free service:

ballybran.freeserve.co.uk

I have been scratching my head trying to figure out the economic viability of an ISP providing free service. There have been a number of U.S. companies that have attempted this and failed. The "Wired" article "Free ISPs Taking Over in UK" notes that the UK ISPs have a significant advantage over their U.S. counterparts. While they hope to generate revenues from banner advertising, they also receive a revenue cut from the phone companies: "Thanks to the regulatory setup, British telecom carriers have to share a slice of the revenue from modem dial-up calls with the ISPs. In effect, the "free" ISPs get about 30 to 90 pence (about 49 cents to US$1.47) from the phone company for each hour a surfer spends online. No such arrangement exists in the United States; free American ISPs live and die by the ad revenue they can scrounge. It's no surprise, then, that in a country where an hour of even local calling costs a mini-fortune, a free ISP would have enormous appeal."

If my ISP had a similar arrangement with the phone company, they would be ahead of the game (each month) after two days. LOL. It is going to be a hard sell to roll out a business plan in the U.S. that includes revenue sharing from the phone companies; too many vested interests.
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