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Speed is big cost issue for Web access

Maybe you've been logging onto the Internet faithfully at work and have been holding off on getting a home connection. Or perhaps you've had a dial-up connection for years and are frustrated with the amount of time it takes to download and upload files. Either way, now might be the time to reconsider your Internet access options. Your decision should depend on how you use the Internet.

Some 75 million U.S. households will have Internet access by the end of this year, according to JupiterResearch, an international firm that provides research, analysis and advice to help companies profit from the impact of the Internet. Of those households, about 27 million will have broadband, or high-speed connections.

If you don't spend much time on the Internet, or the bulk of your Internet usage consists of sending an occasional e-mail or surfing a few Web sites, a dial-up connection is likely all that you need. With a dial-up connection, your computer's modem uses the phone to give you a temporary connection to the Internet. The speed of the connection depends upon the type of modem you have, as well as other factors, such as the congestion along the phone lines when you log onto the Internet. But the average data transfer rate ranges between 25 kbps (kilobytes per second) and 41 kbps, according to technology news service CNET. As long as speed and download times are not an issue for you, this is the cheapest type of Internet access you can find, ranging from free to about $24 a month.

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Among the dial-up Internet Service Providers, America Online is by far the largest, with about 23 million subscribers, followed by Microsoft's MSN Network, says JupiterResearch's Joe Laszlo. AOL charges $23.90 per month, while MSN offers similar service for $21.95. Compuserve, which is another large provider and is owned by AOL, charges $21.95 per month.

But you can get your access for free -- a good deal for people who spend a minimal amount of time online and don't mind a dial-up connection. United Online, which provides Internet service through the brands Juno and NetZero, offers free dial-up Internet access for 10 hours per month. The same service offers unlimited Internet access for only $9.95 per month. With services like Juno, you won't get the content that America Online and MSN are known for, but you'll get the Internet access, which might be all that you need.

While dial-up Internet access may be fine for casual Internet users, those who download music, play games or upload files might find that a dial-up connection is no longer suitable for their needs.

Janette Jones of Gwynn Oak, Md., had a dial-up connection for about four years, which she used to look at Web sites and upload and download files. However, she grew increasingly frustrated with her connection the longer she used it.

"Dial-up was always slow," she says. "I decided that when I moved into my new house, I wanted a faster connection."

Her story is in fact rather common, says Laszlo.

"One day the slowness of the dial-up connection just gets to be too much for people to take," he says. "For a lot of people, having a fast connection at work and then going back to a slow connection at home becomes a very frustrating kind of thing."

Broadband provides speed
If you fall into that category, a broadband connection could be what you need. Unlike dial-up connections, which are temporary and can be cut off, broadband connections are always on. As long as your computer is on, you don't have to wait for a number to be dialed to get a connection.

The downside of an "always-on" connection is that it is easier for hackers to break into your system since your connection stays open, so if you decide upon a broadband connection, you might want to purchase firewall software, which will give your system added protection.

The most popular types of broadband connections are cable broadband connections, which give you Internet access via cable lines, and Digital Subscriber Line, or DSL, connections, which use special telephone lines that can transmit both voice and data communications at the same time.

Today, cable Internet access is the most popular type of broadband connection, says Amy Cravens, a senior analyst with consulting firm In-Stat/MDR, a leading provider of research and market forecasts of advanced communications equipment and services. "Cable will continue to be the larger market through 2008."

One reason some consumers choose cable connections over DSL connections is because of installation difficulties, says Laszlo. When you order Internet access through a cable provider such as Comcast, a technician will come to your home and hook everything up for you. DSL access, on the other hand, generally comes with a self-installation kit, or you can pay extra to have a technician come in to hook it up.

For Jones, the self-installation kit steered her away from DSL. "I had problems connecting with the server," she says. "It was really complicated." After a couple of weeks of going back and forth with DSL support technicians, Jones decided to look into a cable connection. She had one installed within a week and hasn't had a problem since.

"It's much faster than dial-up and it's definitely worth the price," she says.

Fast and faster
Speed is definitely a factor when it comes to broadband connections. DSL connections average between 467 kbps and 1158 kbps, according to CNET, while cable connections tend to average between 641 kbps and 1669 kbps.

The price of cable and DSL connections generally ranges from $40 to $50 per month. However, cable companies and phone companies have recognized the allure of packaging their services. If you already buy cable from a company that sells you Internet access, you can probably get it for only about $30 per month. Likewise, if you go with DSL service from your phone company, you can get a similar deal.

There is generally a one-time fee that goes with DSL -- even if you don't use their home installation service -- and cable Internet access, but competition has also created a number of promotional deals, which range from free installation to six months of discounted service.

If the self-installation process is not an issue, when it comes to choosing between DSL and cable, you should consider that, "Cable operators generally give you a faster connection and charge a little bit more for it," says Laszlo.

"If you're Internet savvy and you like doing things like downloading music and watching videos and playing games online, cable service might be a better choice for you," he adds. "If you mostly just e-mail and visit Web sites and that kind of thing, then I definitely recommend looking at DSL first, because often you can find a cheaper tier of service from the DSL guys."

Comcast is the biggest cable Internet provider. Among the most popular DSL providers are Verizon and SBC. Another provider, Earthlink, offers cable, DSL and dial-up access plans. If you go with a high-speed provider and decide that you still want AOL or MSN's content, you can buy their content and use it with your Internet service for an additional $9.95 per month.

The other broadband choice, high-speed satellite, lags behind cable and DSL access and should really only be used if you can't get cable or DSL access in your region, Laszlo says.

"Satellite has a couple of key disadvantages," says Laszlo. "It costs a lot to get a satellite Internet connection. You generally need a new dish even if you're a satellite TV subscriber. Satellite connections are also typically much slower than either DSL or cable connections."

Aside from satellite, most analysts say Internet access is a decision that should be based on your usage habits, and in many cases, the other services you currently use.

"The path of least resistance is to look first at who your cable guy is and who your phone company is," says Laszlo. "Those guys provide very good service."

Tamara E. Holmes is a freelance writer in Maryland.

-- Posted: Dec. 1, 2004
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