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February 12, 2005

Dialup is dead, right? So why is one company trying to rollup a bunch of dialup providers? Well, the logic appears to be taking the rollup one step further, recognizing that many people using dialup are only doing so because there aren't many alternatives. So, the plan is to rollup and then play leapfrog over wired broadband providers. The company, founded by a founder of MTV, is trying to buy a bunch of small dialup ISPs in "tier 3" cities, and then will build a wireless broadband offering to provide those users a migration path. That seems like a pretty big bet to make. First off, it's not clear that the reason these folks are on dialup is just because they don't have the other options. What if they don't want broadband (or, worse, don't want to pay for broadband)? Also, building a broadband wireless network still isn't that cheap, and there's no real indication what technology (or spectrum) this company plans to use. Finally, building a nationwide brand takes money as well. So, basically, this company seems like a poor man's attempt to be Clearwire (wireless broadband, lower tiered markets), but without money, spectrum, or Craig McCaw's ability to build buzz. And, of course, plenty of folks are pretty skeptical about Clearwire's chances in the first place. The only thing this new company seems to have is a bunch of dialup subscribers they had to buy, who might not want to jump to a (still non-existent) broadband wireless offering.
Originally from Techdirt, remediated by jkinberg on Feb 12, 2005 at 02:22 PM