High-Speed Web Access May Cost More, Analysts Say

Share this article:
The cost of high-speed Internet access is expected to rise this year as factors ranging from a plunge in advertising revenue to fewer companies offering the service conspire to affect the market, analyst and industry executives said yesterday.


Over the past several years, DSL rates have remained in the neighborhood of about $40 a month. But now that seems destined to change, said Jeff Sadler, a stock analyst at FAC/Equities.


"If you're not making money on advertising and you've got objectives to meet, raising prices is one of the ways to do it," he said. "Who is going to step in to counter it?"


Another factor in the expected rate increase appears to be the ongoing high demand for broadband services. The equipment necessary to install a broadband connection is more expensive than traditional dial-up services.


"The cost of rolling out the broadband network is too high relative to the revenue it produces," said Charles Ardai, CEO of Juno Online Services. "The upfront costs of setting up a customer potentially can swamp many months or years of profits," he said.


Share this article:
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

CMOs Who Take Charge of Digital Make More Money

CMOs Who Take Charge of Digital Make More ...

Chief marketers who usurp the CDO role earn the board's respect, as well as base salaries of $500,000 and up, says a new study.

Microsoft Set to Overtake Yahoo in Ad Revenues

Microsoft Set to Overtake Yahoo in Ad Revenues

Marissa Mayer can take credit for reversing ad declines. Still, her company will fall out of digital's Top 3 by year's end, according to eMarketer.

Oracle Announces Enhancements to its Marketing Cloud

Oracle Announces Enhancements to its Marketing Cloud

It continues to integrate functionalities from BlueKai, Responsys, and Eloqua.