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To: Jacalyn Deaner who wrote (1256)6/20/1999 5:54:00 PM
From: Jacalyn Deaner  Read Replies (2) | Respond to of 3519
 
FWIW - June 18, 1999 report in BBC:

news.bbc.co.uk

pay particular attention to the graph wherein out of ALL the ISPs where xstream lies, on the floor.

graph could not be pasted, go to link to see graph.

Sci/Tech

Dixons' freeserve out in front

Source: UK Internet User Monitor, Fletcher Research

By Internet Correspondent Chris Nuttall

Nine months after the launch of Dixons' freeserve as a
subscription-free Internet Service Provider, two out of
three home Net users are no longer paying for their ISP,
according to a survey.

Fletcher Research's six-monthly poll of 40,000 Net users
has revealed the extent of the free ISP revolution in the
UK.

Nearly one in three, 31%, of those connecting to the
Internet from home are using freeserve. BT ClickFree is
next with 14%, ahead of the subscription services AOL,
BT Internet and CompuServe on 9%, 7% and 7%
respectively.

Virgin Net (7%) and TescoNet (5%) are now free, but
Demon Internet (5%) still charges a subscription. MSN
(4%) went free this month.

Challenge for pay services

Fletcher says the situation is still fluid with consumers
on average having 1.3 active accounts and many existing
subscribers having not yet dropped their pay accounts.

It says pay services face the challenge of keeping their
subscribers in the coming months, never mind recruiting
more members.

Fletcher predicts that while the number of homes online
will reach 7.5 million by 2003, the number paying for
access will fall to just 1.5 million, down from 2.3 million
at the end of last year. It says revenues from telephone
calls will exceed subscription fees in 1999.

Fletcher forecasts that 12.5 million adults (seven million
at home) will be online by the end of the year, rising to
almost 20 million by 2003.

freeserve 'matchless'

"In just nine months, the Internet access industry has
been revolutionised by the advent of subscription-free
providers," said Neil Bradford, Director of Fletcher
Research, which specialises in Internet research.

"freeserve's compelling proposition and aggressive
development has built a powerful online brand with a
formidable lead in the UK Internet access market," he
said.

"We do not expect any other brand to be able to match,
let alone overtake, freeserve's progress, unless a new
business model for delivering access arrives, such as
offering free phone calls or free PCs."


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