In the early days of the Internet, having a high-speed IP connection in your home or even a small business was, if not impossible, certainly a rarity. Connecting to a computer in those days required you to use your phone. Early modems used acoustic couplers, but by the time most people started trying to connect, modems that plugged into your phone jack were the norm.
The problem was: whose computer did you call? There were commercial dial-up services like DIALOG that offered very expensive services, such as database searches via modem. That could be expensive. You had a fee for the phone. Then you might have a per-minute charge for the phone call, especially if the computer was in another city. Then you had to pay the service provider, which could be very expensive.
Even before the consumer Internet, this wasn’t workable. Tymnet and Telenet were two services that had the answer. They maintained banks of modems practically everywhere. You dialed a local number, which was probably a “free” call included in your monthly bill, and then used a simple command to connect to a remote computer of your choice. There were other competitors, including CompuServe, which would become a major force in the fledgling consumer market.
While some local internet service providers (ISPs) had their own modem banks, when you saw the rise of national ISPs, they were riding on one of several nationwide modem systems and paying by the minute for the privilege. Eventually, some ISPs reached the scale that made dedicated modem banks worthwhile. This made it easier to offer flat-rate pricing, and the presumed likelihood of everyone dialing in at once made it possible to oversubscribe any given number of modems.
The Cost
Once consumer services like CompuServe, The Source, and AOL started operations, the cost was less, but still not inexpensive. Some early services charged higher rates during business hours, for example. There was also the cost of a phone line, and if you didn’t want to tie up your home phone, you needed a second line dedicated to the modem. It all added up.
By the late 1990s, a dial-up provider might cost you $25 a month or less, not counting your phone line. That’s about $60 in today’s money, just for reference. But the Internet was also booming as a place to sell advertising.
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