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Network service provider

Source: Shangpin China | Type: website encyclopedia | Time: 2015-09-19
With the progress of mankind and the development of science and technology, the Internet has entered people's lives, and even can not be separated from the Internet, such as e-commerce, Website Design Internet finance, accounting computerization, etc. Internet service providers are commonly known as ISPs, or Internet Service Providers. A network service provider is an organization that provides Internet interfaces and related services to users. Generally speaking, there are two categories of ISPs. One is LAPs that only provide dial-up access to users. It is small in scale, strong in locality, and limited in service capacity. Generally, it does not have its own backbone network and information source, and the information service provided to users is limited. Users only regard it as a contact point for surfing the Internet. The other is the Internet Content Provider (ICP), which can provide users with a full range of services. In larger regions, its networking ability can provide various information services such as special line and dial line Internet access and user training services. It has its own unique information source. The construction of such ISPs has large investment and wide coverage, which is the main direction of the future development of ISPs and an important force in the future Internet construction.
 
Network service provider

The United States is the birthplace of the Internet. After several years of outbreaks, the Internet service market entered the merger period. There are more than 3000 network service providers in North America. The average annual turnover of Internet service providers is 630000 US dollars, with 13 salaried employees, providing services to 1844 Internet users. In the face of fierce market competition, network service providers are rapidly differentiating. Some network service providers take price reduction measures to gain market share, some increase prices to make up for cost losses, and some network service providers stop operating unprofitable Internet services.

The financial situation of Internet service providers is generally poor. In 19% of the year, BBN's revenue was $234 million, and its net loss was $56.6 million. The total income of PSINet in the first quarter of 1997 was $25.6 million, with a loss of $9.3 million. Total revenue is so high, but there are quarterly and annual losses. When such large service providers cannot make profits, the problems of smaller companies are more serious. The primary reason is the high cost of the line. Network service providers do not own basic physical equipment, so their operating costs are too high. Generally, network service providers do not have their own optical cables. Therefore, they have to rent optical cables from AT&T, MCI and Sprint, which is the reason for the high operating costs. Charging is also a problem. It's not hard to start a network service company, but with more and more customers, the demand for higher speed equipment is growing, and the cost becomes increasingly expensive. Big companies like AT&T charge a uniform and relatively cheap monthly fee for providing unlimited access services. For example, AOL introduced a charging rate of $19.95 for unlimited access to the Internet. This forces small companies to do the same. However, as more and more people go online and spend more and more time online, the simple and cheap network used by early service providers is overwhelmed. Some enterprise users have abandoned their ISP and connected to the Internet directly. For example, a medical device manufacturer in New Jersey connected itself to the Internet and provided access to 2000 employees. This is cheaper economically. Siemens Business Communication Systems also uses its own dedicated line to directly access the Internet for employees. This is also a loss to ISPs.

Internet service providers are struggling due to lack of funds, and the industry will step into the autumn of merger and bankruptcy. Analysts have long predicted that there will be a wave of mergers and acquisitions, which they believe will continue for several years. The merger of ISP pioneer UUnet Technology Company and commercial telecom giant MFS Communication Company is just the prelude to the merger, and more mergers have followed. It is estimated that about 2000 small regional companies will go bankrupt, and 300 or 400 companies will be merged. A consulting firm in Boston even predicted that there might be only 60 Internet service providers left by 1999. It is estimated that by 2002, the current 4500 Internet service providers in the United States will be reduced to 500, that is, the number will decline by 90%. Among the 500 surviving providers, there will be 15-20 national giant service providers, and almost all of them are large communication enterprises.
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