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New way to save? Dial back to dial-up: Cost-cutters return to slow-speed InternetFeb 28, 2009 (The Orlando Sentinel - McClatchy-Tribune Information Services via COMTEX) -- With his work hours cut and an investment portfolio in the tank, Arnold Zimmerman is considering the unthinkable: ditching his blazing-fast cable Internet service and going back to dial-up. "I didn't think I would ever go back," said Zimmerman, 66, of Davenport. "I had to wait to get online. It was terrible. But with this economy, you got to look to cut wherever you can." You remember dial-up, don't you? It's the beep, crackle, pop method of sending e-mail and browsing the Web that was pretty much the only option in the early days of the Internet. In today's media-rich world of social networking, online videos and music, going from high-speed to dial-up is like switching from a Maserati to a horse and buggy. But some people say the hundreds of dollars they would save might just be enough to make them go back, especially for those who have access to high-speed Internet at work. Although there aren't any studies about how many people are switching from high-speed to dial-up, there are signs that it is becoming an option for cost-conscious customers. United Online, which owns dial-up providers NetZero and Juno, recently launched an advertising campaign in which CEO Mark Goldston says the average family can save $300 a year by switching to NetZero's $9.95-a-month dial-up Internet service. 'Not the iPod crowd' The company announced last week that during the fourth quarter of last year, the percentage of customers dropping its services hit an all-time low at just 4.3percent. "This is not the iPod crowd we're talking about," Goldston said. "It's the e-mailing group and people doing casual surfing around the Internet. I am not for a minute suggesting that dial-up is better than broadband, but when it really comes down to it, the real question is: How powerful is your need to save money?" Goldston said interest in dial-up is the highest it has been since its heyday about 10years ago. He likened switching to dial-up to buying generic brands or putting regular gas in a car that calls for premium only. Shortly after NetZero started running ads, dial-up competitor PeoplePC -- owned by EarthLink -- announced a dial-up plan at $7.95 a month. Kevin Brand, senior vice president of product management, said EarthLink has seen an increase in dial-up customers. According to the Pew Internet and American Life Project, 57percent of Americans have broadband at home, while 9percent have dial-up. Officials at Atlantic.net, an Orlando data-hosting company that also provides residential dial-up service, said they have also seen a spike recently in dial-up customers. Officials at all three companies said that although there is renewed interest in dial-up, it's still not a robust, growing segment of the Internet-service business. Jeff Kagan, a telecommunications analyst in Atlanta, said there isn't a mad rush of people from high-speed to dial-up. When people look to cut costs, they typically slow their Internet speed or switch from cable to DSL. High-speed: A necessity? Dial-up Internet provides a connection of 56kilobits per second, while broadband Internet (DSL or cable) typically ranges from 768kilobits per second to 15megabits per second. That's from about 15 to more than 270 times faster than dial-up. Plus, using the Internet at home has become so ingrained in people's lives that many see high-speed as a necessity. "Right now, it is the beginning of a trend toward dial-up to save money for a segment of the users," Kagan said. "That trend will continue to grow as long as the economy is screwed up. Once the economy gets repaired, that will drop off quickly because high-speed Internet will be the first thing they add back." But for many people looking to save money, going back to dial-up won't ever make sense. Irene Walther, 60, of Orlando was laid off from her job in July as an administrative assistant. She switched from dial-up to high-speed Internet about a year ago and said she won't go back because it's so slow. "My nephew would send pictures of the baby, and it would take an hour or an hour-and-a-half to download my e-mail," Walther said. Etan Horowitz can be reached at [email protected] or 407-420-5447. To read his technology blog, visit OrlandoSentinel.com/techblog. How much would you save? Dial-up Internet service from People PC (owned by EarthLink) costs $7.95 a month, but you need to have a home phone line to use it. The average monthly price of broadband is $34.50 a month, according to a July report from the Pew Internet & American Life Project. So switching from broadband to dial-up could save $319 a year. To see more of The Orlando Sentinel or to subscribe to the newspaper, go to http://www.OrlandoSentinel.com. Copyright (c) 2009, The Orlando Sentinel, Fla. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |