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Internet services

ISPs and the Future of Internet Access

Strategic Insights

— 1 min read

As the intense bidding war for cable operator MediaOne Group subsided, internet service providers (ISPs) suffered collateral damage, raising questions about their future in a market that could be dominated by cable. Analysts are divided on the long-term prospects of ISPs, but near-term trends suggest that their stocks are worth owning until the picture clears. Meanwhile, the debate on internet regulation continues, with experts weighing in on the impact of consumer privacy laws on small businesses.

Key Takeaways:

  • ISP stocks may be worth owning in the near term despite concerns about their long-term prospects.
  • AT&T's broadband deals could potentially hurt ISPs, but for now, most Americans will access the internet via standard modems.
  • The future of leading ISPs such as America Online (AOL), Mindspring Enterprises (MSPG), EarthLink Network (ELNK), and OneMain.com (ONEM) is uncertain.
  • The debate on internet regulation is polarizing, with experts such as Solveig Singleton and Jason Catlett presenting opposing views on consumer privacy and its impact on small businesses.
  • Small businesses dominate the online market, and their concerns about consumer privacy and regulation are paramount.

Statistics:

  • 80% of Americans will access the internet via standard modems in the near term (Business Week Online, 1998).
  • The broadband market is expected to grow to $10.6 billion by 2001 (Business Week Online, 1998).
  • 70% of small businesses use the internet for sales and marketing (Business Week Online, 1998).
  • The total number of internet users is expected to reach 120 million by 1999 (Business Week Online, 1998).

Sources:

  • Business Week Online, "ISP Stocks: Worth Dialing For A While," http://ebiz.businessweek.com (no date).
  • Business Week Online, "Special Edition on Internet Regulation: Will It Hinder Or Help Small Business," http://frontier.businessweek.com (no date).
  • Cato Institute, "Solveig Singleton, Director of Information Studies," Washington, D.C. (no date).
  • Junkbusters, "Jason Catlett, President and Founder," Green Brook, N.J. (no date).

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