Slashdot Mirror


Microsoft Soft-Pedals Dialup

twitter writes "The NYT reports Bill Gates surrender of dial-up Internet access. 'We stayed in the access business for a while, and then we decided it wasn't for us.' $314 million in advertising yielded $300 million in losses last year." Microsoft's dialup service isn't disappearing, but the company is scaling it back and ending the expensive marketing campaign. This leaves exactly how many big players in the dialup market? Dialup is still the only option in many places.

31 of 278 comments (clear)

  1. decentralization of acess is fine by me. by luge · · Score: 5, Insightful

    If the majority of the country can only get on through mom-and-pop or local dialups, that will make it much harder for Big Content to place chokeholds on how everyone accesses and uses content. If 90% of the country used AOL, MSN, and AT&T, we'd all be screwed- you'd see complete blocks on all music downloads the moment that happened.

    --

    IAAL,BIANLY

    1. Re:decentralization of acess is fine by me. by JPriest · · Score: 5, Insightful
      AOL = $24.95 + a ton of free spam and shitty software.

      Mom @ pop = $9.95, no crappy software required.

      AOL is currently losing customers at a rate in the millions/year. Even broadband is only $7 - $10 more than AOL dialup and you don't have to tie up the phone line.

      --
      Saying Java is nice because it works on all OS's is like saying that anal sex is nice because it works on all genders.
    2. Re:decentralization of acess is fine by me. by tepples · · Score: 4, Insightful

      Dial-up can move about four bucks' worth of music downstream an hour.

    3. Re:decentralization of acess is fine by me. by irc.goatse.cx+troll · · Score: 4, Interesting

      "What incentive do these big players have to block music downloads?"

      How about legal? regardless of whether its legal or not now, if theres a law making it illegal only the ISP's with N thousands of users will be harassed to follow the law. Mom and pop who wired up their building and bought a T1 are fine. Mom and pop who bought a few T1's and service their urban town are fine. Aol who bought out thousands of mom and pops has to comply.

      --
      Pain lasts, kid. Its how you know you're alive. Sometimes I think this growing up thing is just pain management-TheMaxx
    4. Re:decentralization of acess is fine by me. by Hythlodaeus · · Score: 5, Funny

      Dial-up can move about four bucks' worth of music downstream an hour.

      Or by the RIAA's estimation, $20,000.

      --
      For great justice.
    5. Re:decentralization of acess is fine by me. by Cylix · · Score: 3, Interesting

      Oh I can go much lower then that.

      If port density isn't your thing you can go for an Ascend max 6096 (96 modems) With a 6 users to 1 line ratio you can squeeze 576 users on that unit. You can grab a 6096 for 3k on ebay. You've got a myriad of options for lower end routing as well.

      Really depends on your aims.

      Accounting packages aren't hard to come by and I do believe freshmeat has a couple suites available.

      It's quite affordable on the low end (assumming you don't want support for some of the aging gear).

      --
      "You should always go to other people's funerals; otherwise, they won't come to yours." -- Yogi Berra
    6. Re:decentralization of acess is fine by me. by vasqzr · · Score: 3, Insightful


      No crappy software required?

      At best you get a 'install disk' that some 14 year old kid hacked up with Visual Basic. With AOL you get a CD with everything on it.

      Mom and pop email = web mail accounts or attempting to configure Outlook Express or some random pop3 client. Ever use AOL mail? You just click on the MAIL Icon and it works.

      We have a local mom and pop shop, they've actually got quite a few customers. $9.95 Internet! The only problem is trying to talk to a live person. And, don't let the internet connection crash in the middle of the night, your dialup account won't work until the next morning whenever they figure out something's gone wrong. What if you've gotta use that internet connection to do business at 5:30am and they don't get there until 9?

      Now, if you're still in 1997, when you literally couldn't keep an AOL connection up, it was incredibly slow, and the software crashed every 10 minutes. They're nowhere near perfect now, but they've got their act running right.

  2. Does this include MSN Broadband? by Limburgher · · Score: 4, Funny

    I only ask because it offers some of the same performance and reliability features of dialup: Dropouts, poor speed, and an inability to use all necessary ports. . .

    --

    You are not the customer.

  3. NYTimes story requires registration? by Safety+Cap · · Score: 5, Informative
    --
    Yeah, right.
  4. MSN causes its own downfall by lithiumfox · · Score: 5, Interesting

    One of my friends used MSN for 1 year after his 6 month trial period was over because the software that Microsoft put on his computer had exploits. He had free quality dial-up service without even paying a dime. If this one person is able to figure out this exploit, imagine how many other people are doing this. MSN loses money because it can't protect against illicit use.

    1. Re:MSN causes its own downfall by Erratio · · Score: 4, Interesting

      I actually came across a possibly similar situation where someone was using MSN without knowing their password. It appeared as though the connection to the Internet was established without authentication, and then you were supposed to login to the MSN network, but if you didn't you could minimize that window and continue to use the Internet.

      --
      I don't try to be right, I just try to make people think
  5. We Don't Need No Stinkin' Big Players by illuminata · · Score: 4, Interesting

    This leaves exactly how many big players in the dialup market? Dialup is still the only option in many places.

    They're not necessary. Just get a box and a good connection, a little bit of equipment, and some local phone numbers and you're set. The costs to set one up and manage one are rather cheap. It's a smart first business to run in a rural area.

    --


    Until Slashdot fixes the funny modifier, use insightful or interesting. The poster knows your intentions.
  6. AOL... by Raynach · · Score: 4, Interesting
    Really, how does AOL make any money? They run their connection out of this innately slow program, they charge the price of broadband in some places, and it overall just sucks. I called AOL customer service one time to ask why I was getting a lot of signal interruptions, and the answer I got was "change your access numbers". I had done this many times before, and told the servicewoman so, but, no, it'll work this time, because she told me to do it.

    Is the real reason AOL makes money is because the masses don't know better? That you can check your email, IM people, AND browse the web outside the safety of AOL's little memory hog?

    Sorry about my rant... I just have a lot of angst about these people.

    --
    - A
    1. Re:AOL... by SurgeonGeneral · · Score: 3, Interesting

      AOL grew out of the BBS era when everyone phoned very small boards that had created their own interface to access the internet. Many people on here will remember calling 10 node boards to check their email, use gopher or post on Usenet.

      AOL is a remnant of that era, still offering its own interface to access the web even though its entirely unnecessary. But people like that, people like the boundaries AOL places because the internet can be a scary, confusing place and they simply arent interested and dont have the time to stick their heads out into the abyss. That BBS feel is something people liked in the 80s and still like today.

      But remember, the AOL bbs also has an access number at just about every major city in North America. If you own more than one home or travel a lot, you recognize this as being advantageous.

      But AOL simply did it better than the rest of the hybrid BBS-Internet companies. They printed up millions of CDs and found a way to get at least one to every person with a computer. Now they have a customer base of 90 million people and its very hard to compete with their brand leverage. Hell, through all the years of Microsoft Hegemoney they went with Netscape on an Internet Explorer dominated operating system (because Netscape also adds to the feel of offering AOL's own user interface).

      And now, do you even get any AOL CDs anymore? When is the last time you heard an AOL CD joke? AOL is standard on all computers and comes bundled with tons of software. To a new computer user AOL is often more obvious than MSN simply because of the brand power.

      I am not sure what you're angry about.
      Its just the way it is.

      --
      -- "Man is born free, and everywhere he is in chains." Jean Jacques Rousseau
  7. Who cares? by saberworks · · Score: 5, Insightful

    Who cares about "big players" anyway? Over the years, I tried compuserv, aol, and earthlink, and I always had better luck with local ISPs. They were cheaper, had faster access, and it was easier to get a -real- tech support person on the phone. They also didn't insist on installing their version of a browser and a "remote help agent" which wanted to sit in the systray all the time. The local guys had a configuration cd which simply changed network settings, and that was it. They included a bunch of other useful apps on the cd as well, but nothing I ever installed (since I had it already).

    I would always rather do business with somebody local.

    1. Re:Who cares? by JediDan · · Score: 3, Insightful

      Big players are the only ones to put broadband into a neighborhood. The local shops might provide it, but they just buy it from the local telco.

      Sooner or later some company(ies) will cover the planet in fiber optic cabling and the internet will move toward limits based only on routing speeds and hardware in your computer. Unfortunately we need to wait for such a glorious day to come and fool around with modems until then.

      --
      - Dan
  8. I'm not dead yet... by cicatrix1 · · Score: 4, Interesting

    Microsoft's dialup service isn't disappearing, but the company is scaling it back and ending the expensive marketing campaign. This leaves exactly how many big players in the dialup market? Dialup is still the only option in many places.

    You can survive without advertising. IMHO, most people who aren't very knowledgable in this area (I.E. someone who would have to choose between AOL or "something else") are more prone to be persuaded by word of mouth anyway. Also, I wouldn't bet against the fact that there are probably some parts of the world where MS has a "monopoly" (for lack of a better term =/ )on the local dialup market anyway.

    --

    I know more than you drink.
  9. yeah, but by theMerovingian · · Score: 3, Funny
    --
    "If you think you have things under control, you're not going fast enough." --Mario Andretti
  10. Satellite Internet Access by Anonymous Coward · · Score: 5, Informative
    Dialup isn't the only option unless you're treed in.

    Disclaimer: I work for a company that does satellite TV (and occassional satellite internet installations). This is why I'm posting anonymously.

    The new DW6000 doesn't require installing software on your computer, it's all in the DW6000 unit. So you're no longer tied to Windows-only. As long as you're sighted-in to your assigned bird, then you're good to go. Yeah, rain-fade is a problem and there are occassional outages.

    Biggest problem: Tech support is absolutely abysmal. My last call to support was 2 hours, 6 minutes, 37 seconds and the problem still wasn't resolved (it's a long story, but the problem was at the NOC but the NOC people didn't see it that way).

    Caveat emptor, but still better than most rural dialup. Huge latency, so it's useless for games, webserving, etc. If you can afford it, try multilink bonding with 2 modems. If not, then you may want to consider DirecWay.

  11. Re:I'm normally a fan of competition... by Erratio · · Score: 3, Insightful

    I don't know how much the dial-up competition keeps away broadband. Dial-up will, at least in the forseeable future, remain significantly less expensive than broadband, because it doesn't require hardware. At the same time the cost of a second phone line and Internet will generally probably be about the same as a brodband connection. I'd think the main factor keeping broadband out of areas is just the immediate lack of the required technology in that area probably coupled with either a risk of profitablity, or just the inability to currently deploy the needed hardware. I've had to work in several areas with large commercial sectors where broadband would be immediately seized upon (and made profitable for the provider), but it's not, or wasn't available yet. I'd think one of the other big reasons would be that, in general, broadband is provided by companies which don't focus on it. It's provided by cable companies or telcos whose main business focal point is the primary service they provide.

    --
    I don't try to be right, I just try to make people think
  12. Whoops, there goes my town's big employer. by temojen · · Score: 3, Informative

    We have a big call centre here. MSN is one of their big clients. I guess most of those people will soon be out of work.

    From what I've heard, the big problem with MSN isn't the advertizing, it's that they install really buggy software ("MSN 8"). A lot of people ended up getting fired from the callcentre for telling MSN customers how to use the plain-old PPP settings & Internet Explorer/Outlook Express to use MSN. It solved their problems, but wasn't in the allowed script.

  13. Re:Take your choice... by axelbaker · · Score: 4, Informative

    Earthlink is no longer related to the church if scientology. Sky Dayton's slimy ass left years ago. It is now just a regular run of the mill megacorporation who only cares about its stock holders.

  14. Don't forget... by DragonMagic · · Score: 4, Informative

    The class-action lawsuit holding Best Buy and MSN accused of fraud for scanning MSN discs for people paying by debit or credit card and saying it's just for inventory reasons, and then six months later MSN would bill them, saying that the free period had ended, whether or not they used the access . . .

    That MSN really is one of the most expensive dialup services in the country, and does not have the most extensive dialup number ranges. Add to this poor lines in major cities (never could get Chicago or Philly lines to stay connected longer than eight minutes), and that there are far better alternatives (Netzero/Juno, etc.) . . .

    That in many areas, $25 is the same price as most cable systems are offering for an introductory offer. Get faster connections without having to tie up or get another phone line? Why would you stick with dialup?

    Just another failed business model for MS that was too late to be viable.

    --

    Human nature is the same everywhere; the modes only are different. -- Earl of Chesterfield
  15. Alternatives... by hendridm · · Score: 3, Interesting

    Get unlimited for far less or start your own ISP!

  16. Re:Remember... by katharsis83 · · Score: 4, Informative

    V.92/V.90 56k technology did not exist at the time of 386/486 chips. Old stuff tends to blend together, but I think 56k technology X2/56KFlex/V.90 came out around the time of Pentium/Pentium II's.

  17. Re:Remember... by porp · · Score: 5, Funny

    So you're saying that in 1992 you had a 56k modem? You also must've had a time machine and traveled to the future to buy it. But you still wouldn't be able to use it since no ISPs would've supported the damned thing. Hell, v.34 wasn't around until 1993 or so. And I'm not even sure when 16650A UARTs were first adopted.

    porp

  18. EarthLink/India/Philippines by Anonymous Coward · · Score: 5, Interesting

    I was a manager at Earthlink, in the Web Services Department. We had some kick-ass programmers there. Unfortunately, although our cool boss, Ranbir Chawla, from India, was a very good designer and coder too, he in turn reported to a backstabbing Hollywood special effects monster named Veronica Murdock.

    Veronica liked to appoint pretty girls to management status, bypassing the very talented software engineers. Veronica's idiots kept forcing stupid designs down our throats.

    Then she'd boast about how her EarthLink stock and options were worth hundreds of millions of dollars (which they were, once). Her boss, in turn, a former banker pretty-boy, was pure PR, no technical know-how.

    Fortunately, the VP and Exec VP screwed up a release of Webmail so badly that two million people's email in-boxes got lost, duplicated, or otherwise chewed.

    So Sky Dayton, then CEO, canned the fools. Then, when EarthLink's stock value plunged after the Mindspring "merger", the VP and Exec VP had used their stock as collateral on other market plays. We hope they lost everything.

    Anyway, it was always EarthLink's secret strategy to peel away AOL and MSN subscribers, using them as a farm system, and giving the more sophisticated users to earthLink, which admitted that this strategy doomed EarthLink to always being #2 or #3 in dialup subscribers. But EarthLink would have lower "churn" and thus make a profit.

    Anyway, all my techie friends at EarthLink lost their jobs when EarthLink outsourced to bangalore and the Philippines. The "Customer Support" people work from phone scripts; they know nothing.

    But that's the answer. If MSN gives up, EarthLink will be #2 to AOL. And all three suck, in different styles, anyway.

    Anybody know where Ranbir Chawla (good guy, though probably Asperger's) or Veronica Murdock (pure Evil, dressed for Success) have gone to? Inquiring minds want to know. Just post your answer here...

  19. Just where is dialup the only available option? by kc0dby · · Score: 3, Insightful

    I could understand this maybe, oh, two or three years ago- but not now. I run a dialup ISP that markets in these rural areas that have been previously without broadband, and the few places that it doesn't make sense for one of the wireless players to show up and take all of my business, are the same places where I can't even set up access because of the cost of installing even a fractional T1 is over $1K / month.

    I guess I'm a mom and pop dialup, or at least just a one man operation with outsourced support, but I think that portion of my business will have to RIP within a few years with Netzero, wired broadband, and 802.11 networks chipping away at the customer base.

    My latest market that I had to pull out my access numbers was, get this, a town with 300 people that one of the wireless broadband providers decided to set up a node in. I went from 200 customers to 20 within a matter of 6 months.

    I'd rather just bank the profits and sell off all the equipment before I try and protect my markets by forcing users into contracts. Perhaps its time to just get out of that business entirely, and use my "billing week" to more productive ends.

    --
    I apparently forgot that sig != uptime...
  20. Re:Remember... by jetmarc · · Score: 5, Informative

    > In 1992, I had a US Robotics Courier V.Everything modem that cost $500. I had to
    > purchase a 16650 UART chip for my serial port to get high speed transfers. It seemed
    > like a lot of software was still distributed on 3.5" disks. Fast forward 12 years
    > later to 2004. After all that time, modems run at exactly the same speed. V.92(?)
    > was fast when the 386 and 486 were kings but not any more.

    Man, you should check your memory with a doctor.. In 1992 NMP5 was a new invention
    to speed up the transfers of those cool 2400 bps modems by a factor of up to 2. A
    little bit later the 2496 chipsets were released (2400 data, 9600 fax), and
    US-Robotics made the world go crazy with their hot 9600 HST (9600 forward 450 back)
    which later improved to 14400 HST (still 450 back channel). By that time, v32 and
    v32bis were standardized and gave 9600 / 14400 (full duplex!) to all.

    Somewhere in 1994 there were 3 players, Telebit PEP Trailblazer with their
    amazing 18432bps technology, US-Robotis with their HST 14400 (which worked very
    well on noisy "satelite" connections, see Phrack/2600), and ZyXEL - the new
    player who improved over v32bis with their proprietary 16800 and later even 19200
    bps modes.

    V34 (28800 and later 33600) was standardized around 1995 if I recall correctly.
    X2/56K came a year later or so, but stayed proprietary solutions for a year
    (USR vs Rockwell), until v90 was defined. Only recently v92 was introduced as
    minor improvement - minor enough to not be employed in many places (eg in
    Europe most dialup access points are v90, not v92).

    So, while in fact the US Robotics hardware remained the same over many years
    (the "dual standard" platform that came with HST 14400 (not 9600) and v32bis
    had enough horsepower to add the newer modes with firmware flash upgrades),
    the dialup modem technology has definately evolved in those 12 years. The
    only thing is that there is simply no way to stuff more data into a channel
    of such limited bandwidth. v34 is about the limit for "telephone line 3khz",
    and v92 is about the limit for "channel digitally sampled at 8khz 8bit".
    There's no more to do, everything is done already. You could make it cheaper
    or smaller or lighter if you really wanted to, but you can't make it faster.

    Marc

  21. EarthLink is fine by me. Or local providers. by valmont · · Score: 3, Informative

    i'll start out by saying that if there is a small, local ISP near you, it might be a good way to go, provided you don't travel or plan to move in this lifetime.

    with that said ...

    i've been a satisfied EarthLink customer for many years now. I switched to their broadband offering since it first came out, and have gladly seen their services dramatically improve. EarthLink makes a lot a sense in my case, as i do travel around quite a bit and find it easy to find and connect to a local POP while using a portion of the 20 hours of free dial-up time that come with my broadband account. They have consistently been at the forefront of spam-fighting efforts, be them legal, or thru software. Their spam-fighting solutions are top-notch, especially since their recently-released Total Access for Mac OS X which allows you to sync your Mac OS X Address Book data with their server, allowing you to almost instantly "whitelist" everyone you know, as Mail.app makes it easy/automatic to add contacts to your address book based on mails received and/or sent. I do also appreciate their other initiatives to fight other Internet annoyances: Pop-Up blocker, server-side scrubbing of e-mail-bound viruses (Virus Blocker), SpyWare blocker which have been resulting in my having to spend less time trying to help my PC-using friends debug their machines. They've also recently released for both Mac OS X and windows, their "EarthLink Accelerator" which is totally bad-ass and results in a dramatic accelration of web-surfing, especially when i use my 15" Apple Aluminum Powerbook's bluetooth connectivity with my Sony Ericsson t610 to dial-up to my EarthLink account at speeds that are limited to less than 14.4Kbps. EarthLink Accelerator is technology licensed from Propel Networks, these guys are really really cool.

    so again, Mom and Pop shops are a good alternative, but do keep EarthLink in mind if you're an impatient Internet user. (which i am, to a great extent heh).

  22. Big players? In dialup? Dialup is little guys... by jonadab · · Score: 3, Informative

    > This leaves exactly how many big players in the dialup market?

    Ummm... Well, there's AOL, but nobody uses them 'cause they suck. There's
    Earthlink, but nobody uses them much either. There'ss MSN... I think I know
    one person who uses MSN. There's Juno, but almost nobody uses Juno either,
    because it's inferior. A few cheapskates use that NetZero, but to most of us
    it's worth the extra ten bucks a month to get decent service. There's demon,
    but you have to live in the UK.

    In any given community un the US, on the other hand, there are anywhere between
    3 and 30 local or regional outfits who all charge the same monthly rate for
    unmetered access, provide enough lines that you never have trouble getting on,
    provide good, solid, reliable email, access to usenet if you want it, and
    (gasp) have an office within thirty minutes' drive of your house, and a tech
    support guy who lives in the area and speaks English. We call these places
    "ISPs", and almost everyone I know uses one of them.

    I get my access through Bright Choice, which is located in Ontario, about
    20 minutes from here. They provide the dialup lines but outsource most of
    the other stuff to bright.net, which is local to Ohio. There are a number
    of competitors. Probably the single most popular ISP around here is richnet,
    which is based in Mansfield, about 30 minutes from here. Almost nobody uses
    AOL, though *theoretically* they're based in Columbus, an hour from here.
    MSN is (very marginally) more popular than AOL because they have a reseller
    here in town (at the local Radio Shack), but I've not heard good things about
    their service from their users. Richnet and bright.net OTOH get good word
    of mouth recommendations consistently. I bet richnet has a 30% market share
    in Galion, maybe more. With so many mostly-identical options, that's quite
    a lot of share for one outfit to have.

    --
    Cut that out, or I will ship you to Norilsk in a box.