Business | Internet service providers

Making a business of the bit buffet

Is offering Internet users an all-you-can-eat menu a recipe for bankruptcy or long-term success?

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SELLING access to the Internet looks easy enough. The number of customers, already in the tens of millions, is doubling each year. Providing them with some software, a telephone number they can dial from their computer and a link to the Internet is so simple that a technically literate teenager can offer such a service from a bedroom--as some have. For that, you can charge customers $240 a year, more than most spend on their local telephone bill. The Internet service industry earned revenues of $1.4 billion in America alone last year, an amount that is expected to rise to nearly $30 billion by 2000.

This article appeared in the Business section of the print edition under the headline “Making a business of the bit buffet”

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