The U.S. ISP Industry: Revenues and Services: Industry Report

The U.S. ISP Industry: Revenues and Services

Product Type: Market Research Report
Published by: In-Stat
Published: September 2000
Product Code: R97-441

Description

The Internet service provider (ISP) market grew to 5,775 vendors generating revenues of $23.7 billion in 1999. Cahners In-Stat Group estimates that the market will grow to 7,785 ISPs generating revenues of $32.5 billion in 2000. Total ISP revenues should have a CAGR of 25.7 percent over the next five years.

Cahners In-Stat Group segments the ISP market by function and scope. Functionally the market can be divided between marketing and network-level ISPs. Marketing-level ISPs function at the lowest level of the Internet. These are any companies that sell Internet access, and do not need to operate a network. Network-level ISPs not only function at the marketing level, but also operate a network. Segmenting ISPs by scope divides them between national and regional coverage. National-level ISPs market services in 26 or more area codes. Regional ISPs operate in 25 or fewer area codes.

The market will see the bulk of the ISP market revenue growth coming from business services. Consumer revenue growth will continue to slow down, as consumer access becomes a commodity.

Business Internet revenues continue to be more diverse than consumer revenues. Just over half of all business revenues come from access. 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.

On the consumer front the story remains access. Consumers are still not willing to pay for value-added services. Access subscriptions account for close to 70 percent of all consumer revenues. ISPs are not relying on one access technology, but are instead moving toward offering multiple access technologies, such as wireless, DSL, and cable. Despite this fact, consumers are still primarily using dial-up connections to access the Internet.

Table of Contents

Executive Summary
Methodology
Introduction
The Big Picture - Overall Market Trends and Size
The ISP Divide - National Vs. Regional ISPs
Business Internet Services
Consumer ISP Services
Conclusions
Appendix

List of Tables

Table 1. Total U.S. ISPs Revenues 1999-2004
Table 2. Average Revenues Per U.S. ISP 1999 - 2004

List of Figures

Figure 1. Number of U.S. ISPs 1997 - 1999
Figure 2. Number of U.S. ISPs in 1999 - National vs. Regional
Figure 3. U.S. ISPs 1999 Revenues - National vs. Regional
Figure 4. U.S Consumer ISP Revenues 1999 - National vs. Regional
Figure 5. U.S Business ISP Revenues 1999 - National vs. Regional
Figure 6. ISP Business Revenue Sources for 1999
Figure 7. ISP Offering Business Customers Web Hosting Services
Figure 8. Services that ISPs Offer Their Hosting Customers
Figure 9. ISP Offering Business Customers SLA
Figure 10. SLA Coverage
Figure 11. SLAs Offering Reparations
Figure 12. Type of Reparations Offered
Figure 13. ISP Consumer Revenue Breakout for 1999
Figure 14. Consumer Access Currently Offered and Future and Plans
Figure 15. How Consumers Access the Internet
Figure 16. ISP Offering Wholesale Services
Figure 17. Average Number of Wholesale customers per ISP 1999
Figure 18. Percentage of Consumers with Web Page
Figure 19. Percentage of ISPs that offer Consumers Web Based E-mail
Figure 20. Percentage of ISPs that Offer Consumers Security or Filtering
Figure 21. Types of Security and Filtering Offered by Consumer ISPs

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