Cable: If your local cable television company also provides Internet access, this is probably your most cost-effective choice. Unfortunately, cable access is not available in many areas. Cable access will cost between $39.95 and $49.95 and provide up to the equivalent of T-1 access (1.5Mbps). Cable access uses what is called a "Bridged" system. Essentially, it is like being on a big local area network that is connected to the Internet backbone from the cable company's offices. From a networking standpoint, all users share the cable company's internal bandwidth on each network segment, and all users share the cable company's backbone access. Cable access is generally good when cable systems are new, but historically have been over subscribed as they mature resulting in degraded performance. From an economic point of view, you can't reliably sell everyone T-1 Internet access for $39.95/month when backbone access costs $1000.00 to $3000.00 a month. Typically, cable companies use internal caching strategies and network segmenting to maximize performance, but as customers and usage increase, the economics don't work and the access slows down, often to levels below that of a 56Kbps modem. Even where cable networks are well managed, the pricing is based on assumptions about how much the average user will use the service. These assumptions don't work at times of special Internet events or as usage patterns change over time. Nevertheless, if your cable Internet access is new and under-subscribed, this can be an excellent choice. Installation is generally free in new service areas and doesn't generally exceed $100.00 even when not discounted. There may also be a nominal charge, generally less that $50.00 for the EtherNet card required for the computer you are connecting. The cable modem is generally provided at no charge as part of the service, but remains the property of the cable company. Some cable companies will allow you to network multiple computers (generally not more than three) for a nominal additional charge. Most, however, require a separate connection for each computer and dynamically assign only one IP number per account.. Most cable companies will not allow you to place servers accessed from the Internet on residential connections. In addition, most cable company contracts prohibit using proxy server software like Wingate to provide multiple computer network access through the primary account computer.

DSL: If DSL is available in your area, this is probably your next most cost-effective choice. DSL technology provides a broad bandwidth connection to the Internet over a standard telephone line. The bandwidth available is highly dependent on the distance from the local telephone company office (TELCO) and local line quality. DSL comes in a variety of flavors: IDSL, ADSL, SDSL, and some confusing brand name DSL like HDSL. DSL stands for Digital Subscriber Line. IDSL is DSL using an ISDN line. This is the only metered rate DSL and is rarely used. ADSL is asymmetric DSL. It is asymmetric in that the upstream bandwidth is less than the downstream bandwidth. SDSL is symmetric DSL. It is symmetric in that both upstream and downstream bandwidth are the same. DSL is provided as a bridged network technology and as a point-to-point product. The lowest cost residential DSL is available directly from your local telephone company. You must be within 10,000 feet of the local TELCO. The low cost telephone company DSL is reported to be bridged (similar to a cable network) and may have usage limits. Telephone company DSL lines may also carry voice and analog modem traffic on the same line as well as the DSL Internet connection. If you purchase DSL from the local telephone company, the telephone company will provide you with a list of 20 or more Internet Service Providers (ISPs) to choose from for your Internet services. We recommend that you choose the telephone company's Internet service to minimize finger pointing when something goes wrong. DSL has the lowest priority for repair with the telephone company. In addition, DSL service seems to have a high repair rate. It is not uncommon for service to be down for three to seven days every couple of months. As a result, we strongly recommend that you maintain dial-up access as a backup if your Internet access is critical to you.

At the present time all other DSL, regardless of who you buy it from, is provided by two companies; COVAD and Northpoint. All ISPs selling DSL are, in fact, reselling COVAD or Northpoint DSL. Given that the basic product is the same, you should make your choice of a reseller based on price and/or the reputation of the ISP. DSL prices vary widely and many ISPs are offering free or discounted installation and/or equipment. All DSL service is based on a one year contract, so choose your providers carefully. DSL purchased from ISPs reselling COVAD and/or Northpoint DSL is point-to-point DSL and is not bridged. This means you are more likely to have the full availability of the bandwidth you purchase with no usage limitations. Low cost residential service from ISPs reselling COVAD and Northpoint DSL is subject to the same 10,000 foot limit. You can, however, buy commercial quality service at longer distances than 10,000 feet at a higher rate. The increased cost is the result of amplification equipment that must be placed on the line to achieve service at the greater distances. DSL purchased from resellers of COVAD or Northpoint DSL does not allow voice/analog data to be carried on the DSL line. This service is only available with service purchased directly from the local telephone company.

The economics of DSL are similar to those of cable service. From an economic point of view, you can't reliably sell everyone T-1 Internet access for $$500.00/month when T-1 backbone access costs $1000.00-$3000.00/month. Bridged system performance may be expected to be similar to that of cable systems. Point-to-point DSL connections may be expected to perform better but should also have problems with performance in the long run. Most DSL providers are providing DSL at prices below their real costs, either to gain or retain (TELCOs) market share. It is important to understand that the real savings with DSL is in reducing the cost of the local loop connection, (the phone line from your location to the Internet backbone). DSL does not provide any reduction in the cost of backbone Internet access. (e.g. A local T-1 FRAME RELAY local loop connection costs about $675.00/month from Pacific Bell. To this you have to add about $2000.00/month for T-1 Internet backbone access. DSL saves you the cost of the $675.00/month for the local loop, but has no effect on the cost of the $2000.00/month backbone access. When you are offered T-1 DSL Internet access for $500.00/month, the seller is betting that you aren't going to use the full bandwidth and that he can sell that same bandwidth to several other customers. The lower the price, the more customers the same bandwidth has been sold to.)

Even with all the considerations discussed above, DSL can be a cost-effective broad bandwidth Internet access solution.

FRAME Relay and Point-to Point T-1 Internet Access: There are no special residential rates for either FRAME RELAY or Point-to-Point T-1 access. See the FAQs on Commercial or Business Access for these services.