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Two Free ISPs Merge

NetZero & Juno chase AOL

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Turning Free into $71 Million

by Dave Murphy
ISSN 1535-3613

Dave Murphy, DGL President & ITrain founder Internet Service Provider (ISP) rivals NetZero and Juno Online Services, two of the largest free ISPs will merge. The $70.7 million deal was announced this afternoon after the U.S. trading markets closed.

The merged company, called United Online, Inc., will claim 7 million subscribers, making it second only to America Online, which has 29 million subscribers. Microsoft's MSN will show with 5 million subscribers.

The clout that comes with being the second largest ISP is anticipated to drive up advertising revenue for the new company. More eyeballs means more dollars.

Dave's Opinion

Both NetZero and Juno currently have free and paid service subscriptions. I'm waiting to see if such a large company can sustain free service. I'm not betting on it.

I've got a number of friends and relatives who use either NetZero or Juno. They're very light email users -- checking their mail at the most once a day. For them free service makes sense. But for regular net users and businesses, the customer service that comes with paid invoices is a necessity.

Call for Comments

What do you think? Leave your comments on the message center.

References

NetZero
Juno
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updated June 7, 2001
http://dgl.com/itinfo/2001/it010607a.html

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