The 'always on' aspect is a big advantage, but high-speed downloads are the magnetic attraction. According to research firm Dataquest, it's clear that the top ISPs are getting bigger, especially in terms of the consumer services they offer, raising the stakes for any vendor without the financial power to compete. Consumer accounts are increasingly spun off to a small group of specialists, leaving a larger number of smaller vendors competing for business accounts. Dataquest's research also indicates that buying is often easier and cheaper than building from scratch. As a result, the telecommunication services industry is on a buying spree that's likely to last for several years, continually changing the landscape for ISPs and often causing abrupt shifts in market share.
Product differentiation is critical if a product or service is going to be successful.
It's therefore alarming that there's an abundance of ISPs that seem indistinguishable from each other. Free ISPs offer dial-up accounts and sometimes Web hosting and free email. The average free ISP doesn't offer services like domain hosting and technical support can be charged at very high, per-minute rates, making them generally unsuitable for business use. Levels of service can vary immensely in this field. Some ISPs offer a free package to try and add value to their services.