INTERNET PRICING
ADVANCED TOPICS

Internet Access Choices
How Can Consumers Access the Internet?



OUTLINE

  • Cost of Equipment

  • Cost of Service
    • Online Service
    • Internet Service Provider
    • Cable on-line services
    • Community online services
    • Internet Appliances
    • Public Libraries
    • Schools

WHAT EQUIPMENT IS NEEDED TO ACCESS THE INTERNET?
Costs of equipment...
Most methods of Internet access require ownership of a personal computer with a monitor and a modem. The cost of a new system with the necessary equipment ranges from approximately $850 to $2500.

   See some of the current prices: Older, used personal computer systems that are powerful enough for web-browsing (486 Intel processor or 68030 Motorola processor or higher) can be purchased for prices ranging from $300 to $1000. Even older computers which are more than suitable for text-only access can be purchased for $300 and less.

HOW MUCH DOES INTERNET ACCESS COST?

Methods Which Require Owning a Computer
  • Online Services
    Online services such as America Online, CompuServe, and Prodigy are the most heavily advertised and marketed avenues to the Internet, making them the most obvious choice to the consumer. Along with access to Internet resources such as the World Wide Web and newsgroups, they also offer their own content and special services. Facing competion from ISPs, online services have dropped their prices to a competetive level rangin from $19.95/month to $24.95/month for unlimited access. Cheaper rates are available for limited time online. Users access these services through the telephone network.

  • Internet Service Providers (ISPs)
    Internet Service Providers include both national corporations such as Mindspring and Netcom and local companies. They typically provide SLIP/PPP accounts which allow direct access to the Internet. Unlimited access is typically $19.95/month. ISPs sometimes charge more for more sophisticated web-hosting services. Telephone companies such as MCI and AT&T have begun to also offer access to the Internet.

  • Cable on-line services
    Cable companies are now developing methods to access the Internet through the existing cable infrastructure and cable modems. The @Home Network is an example of a growing cable service. Cable modems allow much faster access to the Internet with data transfer rates as high as 10 Mbps (megabits per second), compared to analog modems which transfer data at 14.4 - 53 kbps or ISDN modems which transfer data at 128 kbps. The rates for access are higher than ISPs and online services, ranging from $29.95 to $49.95 per month.

  • Community online services
    Community Online services are ISPs which allow access to the Internet either for free or for significantly reduced cost. On example of these type of services is FreeNet ( a list of FreeNets), which offers free access to limited services on the internet, including e-mail, usenet newsgroups, text-based web-browsing using lynx, and other locally-based services (such as local markets). FreeNet is funded by public donations, corporate sponsorships, and government grants.

Methods Which Do Not Require Owning a Computer
  • Internet Appliances
    Currently there is a nascent market for internet appliances which allow Internet access without an expensive computer. These specialized devices come with built-in modems and use a television set as the display. WebTV is the leader in this market, selling Internet devices ranging from $100-$300. Owners of WebTV must also pay a monthly rate of $19.95 for access to the Internet. Services are limited to e-mail, web browsing, and other special content offered by WebTV.

  • Public Libraries
    Anyone can use the internet terminals commonly found at public libraries to do research and browse the web. Also, anyone with access to the world wide web has access to e-mail through services such as Hotmail. Thus even the most poverty-stricken members of society have an opportunity to access the Internet.

  • Schools
    With the help of grassroots movements like NetDay the dream of having all public schools connected to the internet is becoming a reality. The Telecommunications Act of 1996 also expanded the coverage of universal access (link to section on Universal Access), leading to legislative measures that requires Internet Service Providers to have discounted rates to poorly funded schools and libraries. Thus in the scope of several years from now, all K-12 students will have access to the Internet through their schools. Also, nearly all undergraduate and graduate students also have free internet access through their college or university. schools.

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LAST UPDATED BY
JOHN LeFLOHIC
MARCH 16, 1998