Feeds

Paid-for ISPs take a beating from free model

Research points to a rapid decline

  • alert
  • submit to reddit

High performance access to file storage

The number of people signing up for subscription-based ISPs is falling so quickly it's like Michael Schumacher hitting the barrier in the British Grand Prix and coming to a bone-breaking halt. According to the quarterly Internet report from investment bank Durlacher, the growth of subscription-based services has decelerated from 80 per cent a year to less than one per cent. And this has come at a time when dial-up use has grown by 66 per cent over the last 12 months bringing the total number of users to 5.8 million people in the UK. If true, this research appears to support anecdotal evidence that subscription based services have been hit hard by the Freeserve revolution. There are now 95 subscription-free services in the UK and this figure will rise to 200 by the end of the year, according to Durlacher. Charles Nasser, MD of UK independent ISP ClaraNet said that he wasn't surprised by findings of Durlacher's Quarterly Internet Report adding that his company was still experiencing steady growth in all the sectors. "We must be the exception to the rule because we're still experiencing high growth," he said, without divulging exact numbers of dial-up users. Indeed, ClaraNet's new FreeTime subscription-based service, which offers users toll-free access to the Net, is receiving 1000 enquiries a day, he said. Earlier this month, a ClaraNet representative told The Register that he was not expecting people to be "clamouring to join" because of the FreeTime packages alone. But before anyone starts sounding the last post for subscription-based services, Durlacher's Nick Gibson believes that free services could face a bleak future. "Most subscription-free ISPs, including Freeserve, offer little to differentiate themselves and provide little or no barriers to exit for subscribers. "As long as users can switch accounts so easily, free-ISPs leave themselves vulnerable to churn," he said. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.