Analysis on Tuesday, updates on Friday. Compared to 1999, these numbers represent 36 percent growth in the number of ISPs and 37 percent growth in revenues. Only 20 percent of the ISPs in the US operate nationally, but they generate 80 percent of total revenues. More than half of all business revenues are generated from Internet access, In-Stat found. But the migration of business activities to the Web has increased the importance of hosting, which now accounts for close to 30 percent of all business revenues.
Consumers are still unwilling to pay for value-added services.
Access subscriptions account for nearly 70 percent of all consumer revenues. According to a report by J.D. Power and Associates , smaller ISPs are using their strategy of offering high-speed Internet access options to threaten the dominance of the six largest ISPs. The J.D. Power study found that smaller ISPs accounted for 52 percent of the new household subscriptions in the past year, led in large part by their DSL or cable modem options. The J.D. Power study also found that connection speed is mentioned by 79 percent of people as the reason they might switch ISPs, making it the most popular reason for a potential switch. Millions of Americans are missing out on the benefits of the emerging digital economy and government regulations are to blame, according to a report by public interest group iAdvance.