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An Internet service provider (ISP, also called Internet access provider) is a business or organization that offers users access to the Internet and related services. Many but not all ISPs are telephone companies. They provide services such as Internet transit, domain name registration and hosting, dial-up access, leased line access and colocation.
Internet hosting services run servers, provide managed hosting, and include the Internet connection.
ISP connection options
Generally, an ISP charges a monthly access fee to the consumer. The consumer then has access to the Internet, although the speed at which this data is transferred varies widely.
Internet connection speed can generally be divided into two categories: dialup and broadband. Dialup connections require the use of a phone line, and usually have connections of 56Kbs or less. Broadband connections can be either ISDN, Broadband wireless access, Cable modem, DSL, Satellite or Ethernet. Broadband is always on (except ISDN that is a circuit switching technology), and varies in speed between 64Kb and 20+Mb per second.
With the increasing popularity of file sharing and downloading music and the general demand for faster page loads, higher bandwidth connections are becoming more popular.
Virtual ISP
A Virtual ISP (vISP) re-sells to the general public Internet access purchased from a wholesale ISP. The vISP's role is to provide any services beyond Internet connectivity, such as e-mail, web hosting, and technical support. The vISP must perform all authentication and accounting functions necessary to provide access and then bill their users for it. This model allows for larger ISPs to increase returns on their investment into what is generally a geographically large, high capacity network, a network which smaller ISPs as customers of the larger ISP can use to serve customers in locations that would previously have been unavailable to them.
History
The history of Internet Service Providers is integral to the development of the formation of the modern internet, as well as the economic impact it had on the world. Commercial use of the Internet began in the early 1990s, with companies like MindSpring serving limited customers and connections starting in 1994. Many started out as small companies with home made software, and server facilities in their garages. Users would pay around $20 to $40 for a dial-up connection. Connection speeds ranged from 9.6kbps to 14.4kbps, and connections were unreliable. At the same time, larger companies such as America Online had their own networks and proprietary software for connecting - therefore AOL was a separate network from the Internet, and one that no longer exists.
V.90 which brought download speeds up to 56kbps was developed in 1998. Larger companies began to offer Internet services. They propelled acceptance of the internet through advertising. Internet prices also began to stabilize. The price for a dialup became $19.95 a month.
By the 2000s, the battle over broadband also began to appear. DSL, which was over phone lines, was an option for traditional ISPs. Cable companies also became ISPs by offering cable modem access. During the late 90s and early 2000s these technologies were in intense competition. Pricing, technology, and market share drove the Internet economy. Smaller ISPs however did not have access to the cable system and DSL was too expensive. Many small ISPs began using wireless technology to provide broadband access. Using this wireless technology fueled the way for wireless networks that are in common use today.
In 2000, The dot-com bust proved a serious threat to the established ISPs. Smaller ISPs offering low-cost internet served a major challenge, as well as an overall slump in the economy. Popularity of the Internet was still on the rise but the companies providing the services were finding a hard time breaking even. Many of the small ISPs still functioned as normal as they operated on revenues and not overinflated stocks.
As of 2005, the larger ISPs are turning over a profit, often through a combination of wireless, wired and content services, all subscription based. One major challenge in the near future is that of free wireless broadband access, possibly provided as a municipality.
Other relevant acronyms
Related services
See also
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