Internet.com ISP-Planet

 


Sections

 • Best of the Lists
 • Business
 • CLEC-Planet
 • Equipment
 • Executive
   Perspectives

 • Fixed Wireless
 • Investor
 • Marketing
 • Market Research
 • News
 • Notable Quotes
 • Politics
 • Profiles
 • Resources
 • Technology
 • Value-Added
   Services

 • Webhosting

Also ...
 • About Us
 • Authors

 • Letters
 • Site Map
 • Technology Jobs


 
ISP Glossary
Find an ISP Term
 
Search ISP-Planet


Search internet.com
 
internet.com

Internet News
Small Business

Advertise
Newsletters
Tech Jobs
E-mail Offers

internet.commerce
Be a Commerce Partner

ISP Market Research

Top 10 U.S. Dialup ISPs by Paid Subscriber

How will the close of NetZero's merger with Juno Online impact our Top U.S. ISP Ranking? Let's take a look at the numbers from our Q1 2001 data and see whether this deal lands United Online at the bottom or top of the heap.

by Patricia Fusco
Managing Editor ISP-Planet
[June 11, 2001]
Email a colleague

First, we'll need to hone down our regular Top 20 U.S. ISP Rank by eliminating cable modem and free ISP services. That way, we'll be analyzing narrowband subscriber counts, for the most part. From there, we're only going to count paying subscribers for Juno and NetZero.

This means some of the other ISPs subscriber bases may be bloated with non-paying users currently counted as subscribers. For example, MSN users that subscribed under its 1-year rebated access plan are counted, even though they may not actually pay for the service at this time. This is not a perfect science by any means, but we have to start somewhere, don't we?

Rank
Dialup ISP
Subscribers
(Dialup millions)
Date & Source
1
AOL Time Warner
22.7*
2
MSN
5.0
3
EarthLink
4.8
4
Prodigy
(Plus SBC Narrowband)
3.1
5
CompuServe
3.0
[Apr. 19, 2001]
AOL TW Reports Strong Growth
6
Gateway.net
(AOL Alliance)
1.7
7
AT&T WorldNet

1.3

8
NetZero+Juno Online
1.0
(24.5 M±)
9
BellSouth
.655
10
Verizon
.525
[May 9, 2001] Corporate Communications Dept.: Q1 New Data

In all fairness to NetZero and Juno, let's take a look at the stats, both in terms of fee-based users and active users. If we look at active user data gathered during the first quarter of this year (left), then NetZero and Juno Online combined would be the second largest dialup ISP in the U.S., when the merger is completed and the two become United Online. In terms of the number of individuals that have signed up to use these free-fee hybrids, some 24.5 million Americans know who NetZero or Juno Online are and what they provide. Unfortunately, nobody really knows who United Online will be or what it is capable of becoming.


In equal fairness to all other dialup ISPs providing fee-based services in the U.S., we need to rank NetZero+Juno by paying subscribers (right). As you can see, the soon-to-be United Online now ranks as the eighth largest dialup ISP in the U.S., which means the combined fee-paying users of NetZero and Juno Online is enough to move them past Bell South and Verizon, but not ahead of AT&T WorldNet services. When last reported NetZero claimed some 116,000 paying subscribers and Juno Online claimed 920,000 paying users. In order to catch up with market leader America Online, United Online would have to achieve an transition rate of 92 percent—moving millions of free clients to fee-based programs.

Of course, United Online would only have to convert 14 free users to paying clients out of every 100 members in order to catch up with MSN and EarthLink. So United Online is capable of playing in the upper echelon of U.S. narrowband fee-based services. But speaking of fees, if NetZero+Juno Online continue to change less than $10 for semi-unlimited monthly access—United Online would have to convert 28 free users to fee-paying subscribers in order to catch up with EarthLink and MSN in terms of monthly recurring revenues.

Now, we'll just have to wait and see what United Online does with the ability to reach out and activate more than 25 million users. Considering the fact that NetZero and Juno embrace advertisers like no other ISPs, all they have to do now is build an enticing portal to increase web traffic.


*
AOL Time Warner U.S. Subscriber figures reflect the ISP's reported worldwide customer counts, less international subscribers, less Compuserve subscribers, and less Gateway.net subscribers.
±
Juno Online and NetZero now report fee-based users.
²
U.S. Online population total and market share figures based on information from CyberAtlas Dialup US Online Population Total: 68,481,217

—End

Other Resources:
  Subscriber Value by Category
  Subscriber Ranking by Country

 

 

Feedback


Advertising inquiry? Click here!

ISP-Planet's RSS feed

#