Report

September 1999

ISPs Move From Free To Personal

Bruce Kasrel 		The rise of free ISPs will undermine the access industry's business model as interconnect fees erode. To survive, ISPs will transform into interactive relationship managers (IRMs) that collect rich user data in order to offer a personalized Net experience across devices.
by Bruce Kasrel with Cliff Condon, Joe Sawyer, Matthew Holmes

MARKET OVERVIEW
  • Providers and consumers embrace the free ISP model.
  • Subscription players respond with lower prices.
ANALYSIS
  • Regulatory and competitive pressures will slash the main revenue source of free ISPs.
  • ISPs will shift to multidevice access to gain new income.
ACTION
  • Staff up to drive the shift to relationship management.
  • Launch the new offering as a stand-alone brand.
WHAT IT MEANS
  • Consumers will use personal data as an online currency.
  • Europe will turn its back on flat-rate local calls.
 
Figures & Data
  • Figure 1.  The Cost Of Internet Access All Over Europe Is Dropping
  • Figure 2.  Subscription Players Continue To Dominate The ISP Landscape
  • Figure 3.  ISP Interconnection Rates Fall All Over Europe
  • Figure 4.  Device Integration Drives Interactive Relationship Managers
  • Figure 5.  Customer Relationships Put ISPs Into The Black
  • Figure 6.  IRM Prospects' Strengths, Weaknesses, And To-dos
   
RELATED MATERIAL 
  • Companies Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • The high price of flat-rate Internet.
  • "Pay phone as you go" Internet access.
  • SBBS shows a way for many smaller players -- out.
  • Chello peddles broadband across the continent.
corner border corner
Ratings and Comments
NOT YET RATED
corner border corner