ISPs (Internet Service Providers) and Hosting Services
Introduction

Many small companies or SMEs venturing into the on-line world need to give some thought to choosing an Internet Service Provider (ISP). In addition to this if a company wants to deploy a Web site then a Hosting Service may also be required. The difference between an ISP and Hosting Service can be confusing for an SME particularly as some services are combined depending on the provider. As there are fundamental differences in the service offerings it is best if they are discussed as separate entities. This is an updated article reflecting amongst other things the rise in the number of SMEs using Broadband connections to the Internet.

What is an ISP?

Before a business can connect to the Internet it has to register with a company that will arrange such services for them. These companies are known as Internet Service Providers (ISPs), which act as Internet gateways for the majority of small and medium sized enterprises (SMEs) wanting to move into eCommerce.

Recently, the UK has seen considerable growth in the number of companies offering ISP services. They range from major telecommunications companies, such as BT and NTL, branded services of other large companies such as Tesco and Virgin as well as many other smaller service providers. For an SME this provides both a wealth of options to consider but perhaps also some confusion as a result of this.  

Connecting to the Internet via an ISP

To connect to the Internet from your computer via an ISP you will need a modem and a ‘phone line. You then dial-up the ISP, who will provide Internet access via their computers (that are permanently connected to the Internet). This is the most simple form of Internet access and if you were buying a new modem for this purpose it would provide you with up to 56kbps (kilobits per second) access.

Figure 1 shows a connection scenario, with computer connecting to the Internet via an ISP's server.

Many companies, particular those who have a need for an additional phone line will use an ISDN (Integrated Services Digital Network) to connect to the Internet through an ISP. BT are the usual providers of an ISDN line that is configured in a similar way to a conventional analogue line (also known as PSTN – Public Switch Telephone Network or POTS – Plain Old Telephone System) except that two channels are provided as part of the configuration. The most common setup for ISDN is to use one of the channels for Internet access, up to 64kbps access and the other for phone or fax. It is possible to bond or multiplex the two ISDN channels together to provide 128kbps although this can have cost implications i.e. two call charges are invoked. Also the modem required for an ISDN connection is different to an analogue modem with is something worth noting before making a purchase.

Broadband access to an ISP is something many SMEs are considering particularly ADSL (Asymmetric Digital Subscriber Line) when the telephone exchange serving an area has been ADSL enabled. Broadband provides you with an ‘always on’ connection to the Internet via an ISP with ADSL being the most popular form of Broadband access that an SME is likely to choose. ADSL has an entry level service providing up to 512kbps (expandable to 2Mbps) download speeds and up to 256kbps upload speeds making use of your existing telephone line without affecting conventional telephone calls. The cost of ADSL is well within the budgets of most SMEs along with similar priced services offered by Cable providers where available. If it is not possible to get ADSL or Cable access Satellite access is a more costly option offering similar access speeds. Two additional service types that are worth a mention are Leased Lines and Wireless Broadband access although are less likely to be used by an SME. There are a number of costly leased line options available from telecommunication providers that could provide an ‘always on’ connection to the Internet where other options are not available. A number of local or City based initiatives to provide Wireless Broadband access also now exist. It is possible although unlikely at present that you fall into the category but this type of service will increase over the next couple of years.

As with Analogue and ISDN access, a form of modem or routing device is needed to provide the link between an ISP and your location.