Lancaster said the number of consumers signing on to ISPs in the United States has slowed in the first part of the year partly because of decreased consumer spending and far less marketing from the ISPs, which have slashed their marketing budgets in the face of an economic downturn. Other signs of weak growth can be seen in the online retail market. Jupiter Media Metrix just reduced its U.S. Internet sales projections by 5.6 percent. Analysts say that although price increases for Net access most likely will not nudge current users off the Internet, they may act as road signs for finding less expensive models. Industry experts compare the Internet service industry to the cable TV market.
Basic cable is the least expensive option with the least stations to view.
With higher prices for Internet access looming, many people will increasingly take inventory of their time spent online. Inc. All rights reserved.