ISP Ranks Still Growing; Big Get Bigger.(Industry Trend or Event)

Business Communications Review, November, 2000

So much for small ISPs not being able to make it. Cahners In-Stat (www.instat.com) market researchers report that there will be 7,785 ISPs in the U.S. this year, up 36 percent from last year, and that these firms will generate $32.5 billion revenue, an increase of 37 percent from 1999.

Only 20 percent of the Internet service providers operate nationally, but these generate 80 percent of the revenues in the market, according to the research. Cahners "National ISPs are sitting at the top of the ISP market, and their position will only get stronger," said Daryl Schoolar, industry analyst for In-Stat. "Not only are they profiting from their current mind-share with end-users, but they are also seeing strong revenue growth from wholesaling their national...

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