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Broadband Internet Service Reigns, But Dial-Up Is Slow To Surrender; Core User Group Holding Out; Analysts struggle to predict when dial-up online service will disappear altogether.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| November 02, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: PETE BARLAS

Dial-up is dying, but no one's sure when to expect the funeral.

As high-speed Internet services get cheaper, the number of Internet users who surf the Web using basic dial-up access is shrinking. But even as the dial-up market erodes, there is a core group of users who may never want to give up the slower service.

That's why it's unlikely dial-up services will disappear altogether -- at least anytime soon.

"The writing is on the wall as far as dial-up is concerned, but you also get the feeling that there are always going to be services available," said Marc Ryan, an analyst at Nielsen/NetRatings, which tracks Internet use.

In August, there were 54.3 million consumers using dial-up services, which are delivered through regular phone lines. That's a drop of 10% from the 60.6 million dial-up users a year ago, according to Nielsen/NetRatings.

Meanwhile, broadband Internet services, which are several times faster than dial-up, are spreading quickly. Forty-two percent of U.S. residents now have broadband, up 16% from January, Nielsen/NetRatings says.

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