How does free ISP change the landscape for AOL and others?
Ultimately, they will have to earn their revenue some other way than through subscription fees. There will still be opportunities to charge customers for Internet service, but you’ll have to provide higher bandwidth, or some additional service. Q: But AOL is showing solid growth in subscribers, and other ISPs are growing, too. Is free Internet service really that much of a threat? A: Ultimately, it is destabilizing if the bulk of [AOL’s] revenues comes from subscriber fees. They have to figure out how to leverage free bandwidth to their advantage. Some Internet service can still be offered for a fee. Q: For instance? A: No ads. And people will pay for that. But my guess is that people will prefer taking the ads in exchange for free service. Q: How can CMGI and 1stUp.com offer free Internet service without taking a bath financially? A: [CMGI subsidiary] NaviNet has the lowest-cost Internet access around the country. We’re providing other free access services with bandwidth, and we’re th
