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Cheap Dial-Up ISPs Gain Ground
prostoalex writes "PC World takes a look at the proliferation of sub-$10-per-month Internet service providers and notices that the market for low-priced dial-up access is actually up in this weak economy. The low rates, with $4.75 per month quoted as the cheapest, are not abundant with features, and many of the dial-up providers don't give you an e-mail account or Web space, but it seems to be a plausible option for many. But reliability is a big issue, since 'about 20 of the startup ISPs [...] shutter within a year.'"
Nothing new in the UK - we have pay-as-you-go zero subscription dial-up ISPs. Had them for ages, due to the funny way non-geographic calls are charged. The receiver gets a cut, that's how these ISPs make money.
And frankly, the average browser user still only eats about 4kbit/s of bandwidth - you don't need broadband for many uses!
There has been a boon of cut-price, unlimited dial-up and DSL accounts through a wholesaler called Comindico.
You basically set up an account with them, order so many lines at each pop and they place lines at each pop on a nationwide number or local number.
The VISPs can then value-add to that service (news, webspace, email) or sell it as ultra cheap internet access (as low as US$8.95/month in some areas).
While the quality varies from ISP to ISP, they are usually fairly reliable so long as your ISP has ordered enough lines.
Espically dial-up. I ran one back in the mid 90's and the 56K technology drove me to sell my customer base to a rival. non 56K dial-up is very easy to get running and maintain. if you can get users happy with 28.8 as a MAX then you can do it... espically cince T-1 connectivity is now cheaper at $690.00 per month for a 3 year lease PLUS your Backbone ISP fees... you're looking at around $900.00 a month for a cheap connection to support about 50 dial in modems. make that around 10 users per modem and you just might make it for that dial-in node.
if you HAVE to have 56K dial in lines then your modem costs just skyrocketed massively from $250.00 per modem to almost $700.00 per modem as well as your dial-in line costs. Making your operating costs basically double for that node.
I don't envy anyone in the dial-up biz anymore. customers calling to bitch about connection speed that dont understand why their wiring in their house or neighborhood is crap and causing part of it. and if you inch past the 10 users per modem you start getting complaints about busy signals.
undercutting to $4.95 sounds like a dot.bomb sales model. as that is making the margins too close for comfort.
Do not look at laser with remaining good eye.