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Rapid expansion and consolidation in the Internet industry makes it... A World Wide Web apart BY BILL KETTLER To get a sense of how much the Internet has become a part of daily life, just take a look at the phone book. Not a single "Internet" listing appeared in the Medford telephone directory as recently as 1996. A few local companies provided Internet connections for individuals and businesses, and several larger organizations sold Internet access from offices in places such as Portland or New Jersey. But none of them had a presence in the Yellow Pages. Things look different now. At least three dozen companies list themselves under the "Internet products and services" category in the current telephone directory. A dozen or more provide Net access. Others design sites for companies that want a presence on the Web, or serve as "hosts" for sites developed by Web page designers. The pace of change locally reflects the global expansion of the Internet universe, said Alan Oppenheimer, of Ashland's Open Door Networks. "The Internet today is still like things were at the beginning of the Big Bang," he said. "Things are changing incredibly fast." How many people are connected to the Internet locally is still anyone's guess. Estimates range from 15 to 25 percent, but everyone agrees that competition in the Internet access market has grown dramatically since the first primitive local access companies appeared in November 1994. In those days, when the Net was new, many local service providers offered several levels of service for different prices. The elaborate pricing structures for Internet access collapsed as more providers offered more on-line hours for less money. Internet access quickly became a commodity, and prices stabilized around $20 per month for unlimited access. Today's fierce competition means nobody is making much money from providing Internet access, said Grants Pass computer consultant Bob Loeser. "The competitive edge is razor-thin," he said. As income from selling Internet access dwindled, many ISPs realized they would need to offer additional services to survive. Oppenheimer, for example, formerly specialized in Net access for Macintosh computers, but now concentrates on selling software to companies that play host to the Web sites of other businesses. Like many local ISPs, Medford's Wavenet added Web-page design services to its basic Net access. "We started out as a personal dial-up provider," said Jason Kuykendall, who started Wavenet in 1995 with his brother, Rodney. "Now we work connecting businesses to the Web." Some early Rogue Valley ISPs were bought out by larger entities. Infostructure of Ashland and Medford Net were absorbed by Internet Ventures Inc., of Los Angeles. Magicknet of Grants Pass was acquired by a Roseburg ISP, Wizzards of the World Wide Web. The consolidations were an inevitable phase of the market's expansion, said Charles McHenry of Medford, a member of the Southern Oregon Telecommunications and Technology Council. McHenry said the Internet market will change dramatically again when huge companies such as US West and Falcon Cablevision provide faster service. "The big players who held back have jumped in with both feet," said McHenry. "That's going to change the whole world." The changes could come as early as next year, McHenry said. Modems that connect to television cables and digital telephone service lines will allow cable television companies and telephone companies to offer much faster Internet connections at attractive prices. "The local ISPs are going to need to differentiate themselves from a variety of big ISPs," he said. Changes for Internet users By BILL KETTLER Faster computers and better software have made the World Wide Web a more interesting place to visit during the past two years. Visiting cyberspace is easier, too, because new computers have been built with Internet access in mind. The latest machines simplify connecting to the Net, searching for information and communicating with other Netizens. The new computers and software have changed the way people think about the Net, said Grants Pass computer consultant Bob Loeser. "People used to use it for e-mail and a little bit of Web surfing," said Loeser. "Now it's become another whole world of communication." Loeser said the way people communicate has changed, too. "E-mails used to be short two years ago. They're much longer now." More sophisticated Web-page design software and better search engines have replaced the clunky programs that limited Web offerings two or three years ago. "There wasn't much there," said Ashland software author Alan Oppenheimer. "Search engines were pretty lousy. You couldn't shop on line. "Now the Web is useful," he said. "It's not just a novelty item." Rogue Valley Net surfers have learned they can do almost anything in cyberspace. Edward Goldhamer of Medford used the Net to plan a train trip through Spain. Kathy Kodak of Ashland Vineyards sells her wines in cyberspace. And Robin Dixon of Dogs for the Deaf in Central Point uses a Web page to publish the group's work across the United States. Loeser said the Net's stability locally has increased substantially during the past several years. He said parts of the network were overwhelmed during the Jan. 1, 1997, flood, but more fiber-optic cables have been laid across the region during the past two years, giving the Net more stability. Despite the improvements, problems remain. The Net's speed (or lack of it) is at the top of most gripe lists. "Bandwidth (Netspeak for speed) is our biggest problem," said Rex Funk of Grants Pass. "Once that problem is solved I think we'll see more people connecting." And some folks still get busy signals instead of a connection when they try to dial up. "It depends on the time of day," said Goldhamer, the Medford man who used the Net to study Spanish train schedules. "In the mornings it's pretty clear, but by mid-afternoon and on into the evening, forget it. The few times I try (to get connected) in the evening all I get are busy signals." Everyone's pipes to the Net will get bigger, but how soon and how much bigger is anyone's guess. Digital telephone service lines will allow modems to operate nearly 10 times faster than the modems most consumers now use. Digital subscriber lines (DSL) also will allow existing telephone lines to be used simultaneously for voice communication and Internet connections. Cable modems (connected to television cables) could operate even faster. Rural regions such as the Rogue Valley need to make sure they're included when plans are made for providing faster electronic communication, said Charles McHenry, a founding member of the Southern Oregon Telecommunications and Technology Council. "One thing to guard against would be a situation where Portland has all the services and we have none," said McHenry. "The very high-speed services are essential for businesses." US West spokesman Gary Miller said DSL should bring faster Internet service to Medford within 12 to 18 months. But the high-speed connections will be available only within a 2.5 mile radius of US West's switching center in Medford. McHenry said Ashland's commitment to creating a fiber-optic cable system has pushed private companies to offer similar services. He expects the pipe to get bigger in 1999. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1998, Medford, Oregon USA