Free ISP Services: The New Trend in the Portal World
In a technology landscape mirroring the revolutionary spread of free email, free Internet Service Provider (ISP) services have emerged as a necessity for any progressive portal site. One of the latest entrants in this space is FreeLane, a service powered by Excite. The chosen carrier for this endeavor is 1stUp.com, an ISP already providing free Internet services to popular portals, including AltaVista.
The Revenue Model: Leveraging Advertising Dollars
Comparable to the television industry, free Internet access is sustained through advertising dollars. While this concept isn’t novel, its validation occurred only in the past couple of years, following the successful IPO of NetZero and 1stUp’s constant deal-making. Co-branded ISPs such as 1stUp allow partners like Excite or AltaVista to provide free Internet access to their users. In turn, these partners benefit from the extensive reach of the co-branded ISP, while also adding a compelling service to their portfolio.
The Dominance of 1stUp: Seizing the Portal Space
Adding Excite to its partnership roster seems to solidify 1stUp’s hold over a majority of the portal space. This move also paves its way to becoming one of the largest ISPs in the nation. The company boasts a user base of approximately 5.5 million registered users. Its extensive list of partners includes TV stations, e-commerce websites, other portals, and numerous Web properties. This broad partnership network underscores 1stUp’s position as the reigning champion of affinity free ISPs.
Competition Heating Up in Free ISP Space
Despite 1stUp’s significant lead, the free ISP space remains ripe for competition. NetZero, an early frontrunner not offering co-branding, has established a substantial national brand and a healthy cash reserve, courtesy of its successful IPO. Numerous e-commerce platforms and offline businesses are exploring opportunities in free Internet services. Sources indicate ongoing negotiations with Lycos, along with other portal and e-commerce sites, for potential co-branding agreements. Hence, the race for dominance in the free ISP space is far from over, and we can anticipate numerous announcements in the near future.
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