WebProNews

The number of Web surfers receiving free Internet access services will more than triple by 2005, according to research firm Strategis Group.

Today, more than 12 million users access the Internet via a free, advertising-supported service, the company said. It predicts the number of users to grow to 37 million by 2005, representing about 23 percent of all U.S. Internet users.

Free ISPs offer customers local dial-up access at no monthly charge. In exchange, subscribers must provide some demographic information and view advertisements.

Washington, D.C.-based Strategis partly based its conclusions on a February survey of 1,000 U.S. households with Internet access.

"The falling cost of network bandwidth has led to a revival of free Internet access," said Strategis analyst Ty Cottrill. However, free ISPs must overcome many operational and financial problems to survive on the long term, he said.

Today, two free access providers dominate the U.S. market - NetZero with about 5 million subscribers and BlueLight, a Yahoo, KMart and Spinway alliance, with 3 million subscribers. But neither is currently profitable, Cottrill said.

Free and charging ISPs are technically identical, the analyst said.

"The only differences are that people believe that free ISPs' customer service is worse and some are annoyed about the ads."

Cottrill predicts that in the near future only two groups of Internet users will exist - those who aren't bothered and get service for free, and those who care and pay. Therefore, low subscription offerings won't find a market, he forecasts.

However, there will be three basic service models for free ISPs, the study said. First, pure free ISPs that develop their own brand and marketing channels; second, ISPs that partner with an established Internet brand; and third, ISPs that team up with a well-known consumer or media brand to take advantage of long- standing customer relationships.

The third model is very attractive to financial institutions, auto manufacturers and fast-food chains which offer free Internet access to customers who sign up for their business-related online services.

For more information or to register with a free isp, visit www.1st-Free-ISP.com/locator.html.

James Martell is the Sr. Editor and Webmaster for Desktop-Publishers.com, a free stuff site featuring free ISPs, free voicemail and free long distance, click here!