ISPs Push Bonus Services
Are those Web access add-ons such a deal?
Tom Spring, PCWorld.com
Care for voicemail with your Internet access or ad-blocking protection with your Web browsing? Internet service providers are stealing a page from car salespeople and pushing extras for their services like leather seats on a Lexus.
Current promotions include ad-blocking software from RCN for a flat $20, access to your phone's voicemail through your in-box for another $6 monthly from America Online, and faster dial-up Internet surfing from NetZero for an extra $5 monthly.
When it comes to providing Internet access, "there are only so many ways to peel an onion," says Jerry Grasso, EarthLink director of corporate communications. He says dial-up and broadband Internet access have both become commodities, so EarthLink tries to differentiate itself by offering related services. ISPs also hope it's a way to make extra money.
Convenience at a Cost
The competition for ISP extras is just beginning, says Mark Zadell, an Internet analyst with Blaylock and Partners.
"This is part of a larger trend," Zadell says. He says nearly all ISPs, big and small, are either offering or preparing to market premium services.
Zadell says these extras will appeal to customers who can reap the rewards of member discounts. For example, Verizon Internet customers can save $10 by buying firewall software ZoneAlarm from Verizon rather than vendor Zone Labs. Some customers might also find it convenient to buy additional services from their ISP and get a single bill for the multiple services.
But just because a service is an add-on doesn't mean it's a sweetheart deal. PCWorld.com found a mixed bag of offerings among the ISP extras being hawked.
Where Are the Deals?
Several ISPs offer accelerated connections for dial-up customers for a few bucks over the basic fee.
For example, the new EarthLink Plus purports to speed dial-up connections by five times for $7 monthly on top of the $22 per month its customers already pay for Internet access. Propel Software, which provides the speed-up technology to EarthLink, also sells a stand-alone version of its product, Propel Accelerator 1.3, that works with any Internet provider. Propel charges $8 monthly.
EarthLink users also get a $10 discount on the purchase of ZoneAlarm Pro with Web filtering. The retail price of this version of the firewall is $60; a standard version without Web filtering costs $50.
Among the plethora of other EarthLink extras are music services, firewall protection, and voice services. But the company offers no discounts over buying the add-ons from third parties.
The advantage is the convenience of a single stop for billing and support, EarthLink's Grasso says. "One company, one call, and one bill," he says.
Similarly, Internet provider RCN offers to sell its customers Panicware's $30 Pop-Up Stopper Professional at a $10 discount from the usual $30 price. RCN also sells its subscribers a more advanced version of the software, Pop-Up Stopper Companion, for $20--half the regular price. The RCN site carries Panicware's free basic version of Pop-Up Stopper.
The ISP also gives its customers a 25 percent discount on the smut-blocking program Net Nanny. It retails for $40, but RCN customers can snatch it up for $30.
Verizon offers a number of perks. The ISP offers its customers lengthened free trial periods for some services, including ZoneAlarm Pro and the music site Rhapsody. It also shaves $10 off the $50 ZoneAlarm Pro software for Verizon Internet customers.
The Premium Pitch
For some Web surfers, the nickel-and-dime up-sell may seem annoying. But analyst Zadell says it's the wave of the future. "People are going to have to get used to paying for value-added features and services," he says.
Perks that come standard with services like America Online and Microsoft's MSN won't go away anytime soon. But any parade of new features will likely carry a price, says Steve Harris, research manager for market research firm IDC.
"We see premium content as a strategic initiative for AOL moving forward," says Jeremy Verba, general manager of AOL Voice Services. Later this spring, AOL is launching a premium antivirus service in partnership with McAfee. Verba says more extras will follow.
Since October, about 300,000 AOL users have coughed up an extra $4 on top of their $24 monthly bill for the members-only service CallAlert, Verba says. CallAlert notifies dial-up AOL users of incoming phone calls, so members can alert callers that they are online. In March, AOL launched another premium service called AOL by Phone. For $6 monthly, it gives AOL members access to their home phone's voicemail through their AOL in-box.
More to Come
MSN also plans to soon roll out premium services, says Lisa Gurry, group product manager for MSN Internet access. MSN extras will be centered on communication and entertainment, Gurry says.
For now, the ISP is trying to get MSN 8 users to join paid services like Gamezone and MSN Money Plus. MSN Internet customers can also subscribe to MSN Music, which provides access to the MSN-branded Pressplay online music service for prices ranging from $8 to $18 monthly.
Neither AOL nor MSN gives price breaks to existing customers for their extra services. AOL's telephone-related services are unique, however.
Even discount ISP United Online recently entered the premium services water, offering its NetZero and Juno customers a speed-up option for its $10 monthly dial-up service. Customers pay an extra $5 monthly for NetZero Hi-Speed or Juno Speedband.
The underlying technology provider to United Online is SlipStream Data, which resells its technology to other firms. One of those resellers, Ikano, resells SlipStream technology under the brand BrowseBlast for $7 monthly.
The lesson for savvy Web shoppers? Shop around.
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