This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Millions Still Use Dial-Up Web Connections

Stocks in this article: AOL T ELNK UNTD

NEW YORK ( TheStreet) -- In a world of always-on, fast Internet connections, it's difficult to believe that there are still a surprising number of Americans who use a dial-up connection to surf the Web.

According to Pew Research, in 2012, 65% of Americans had broadband connections in their homes, while 3% had dial-up connections. In 2000, those numbers were reversed -- 65% connected via dial-up while only 3% had broadband connections.

Although it is only a small percentage of overall users, 3% translates into a substantial number unwilling or unable to access higher-speed Web offerings such as fast downloads or streaming music files and videos.

There are still a handful of familiar names offering dial-up service including AOL (AOL - Get Report), AT&T (T - Get Report), EarthLink (ELNK - Get Report) and United Online (UNTD) (brands include Juno, NetZero and Kmart's BlueLight). Although user statistics have remained constant over the past two years, AOL has been raising some prices for its estimated 3 million dial-up customers to cover increased costs of keeping the service up and running.

AOL shares were gaining 0.86% to $34.10 on Thursday in New York.

Pew reports that price seems to be the main reason people stick with dial-up service. Although unlimited dial-in is listed as free, AOL offers three tiers of service ranging from $10-$26 per month. That's in addition to what the local telephone company charges each time a connection is dialed-up as well as how long that connection lasts.

There were no statistically notable differences tied to community-type meaning rural, city and and suburban dwellers are equally likely to use a dial-up connection at home. Hispanics, at 5%, are the most likely ethnic group to dial-in compared with 3% of white and 1% of black users.

Other potential customers complain they can't get a broadband connection where they live. Local phone and service providers say they live too far away to be wired for a DSL, cable or fiber-optic connection. For friends who live a few miles outside of Dayton, Ohio, the only option available is an Internet connection via satellite which is affected by the weather and ultimately very slow and very expensive.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs