Initial public offering
Initial public offering or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and also retail investors. Through this process, colloquially known as floating, or going public, a held company is transformed into a public company. Initial public offerings can be used: to raise new equity capital for the company concerned. After the IPO, shares traded in the open market are known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms and as a proportion of the total share capital. Although IPO offers many benefits, there are significant costs involved, chiefly those associated with the process such as banking and legal fees, the ongoing requirement to disclose important and sometimes sensitive information. Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus. Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter.
Underwriters provide several services, including help with assessing the value of shares and establishing a public market for shares. Alternative methods such as the Dutch auction have been explored and applied for several IPOs; the earliest form of a company which issued public shares was the case of the publicani during the Roman Republic. Like modern joint-stock companies, the publicani were legal bodies independent of their members whose ownership was divided into shares, or partes. There is evidence that these shares were sold to public investors and traded in a type of over-the-counter market in the Forum, near the Temple of Castor and Pollux; the shares quaestors. Mere evidence remains of the prices for which partes were sold, the nature of initial public offerings, or a description of stock market behavior. Publicani lost favor with the rise of the Empire. In the early modern period, the Dutch were financial innovators who helped lay the foundations of modern financial systems; the first modern IPO occurred in March 1602 when the Dutch East India Company offered shares of the company to the public in order to raise capital.
The Dutch East India Company became the first company in history to issue bonds and shares of stock to the general public. In other words, the VOC was the first publicly traded company, because it was the first company to be actually listed on an official stock exchange. While the Italian city-states produced the first transferable government bonds, they did not develop the other ingredient necessary to produce a fledged capital market: corporate shareholders; as Edward Stringham notes, "companies with transferable shares date back to classical Rome, but these were not enduring endeavors and no considerable secondary market existed."In the United States, the first IPO was the public offering of Bank of North America around 1783. When a company lists its securities on a public exchange, the money paid by the investing public for the newly-issued shares goes directly to the company as well as to any early private investors who opt to sell all or a portion of their holdings as part of the larger IPO.
An IPO, allows a company to tap into a wide pool of potential investors to provide itself with capital for future growth, repayment of debt, or working capital. A company selling common shares is never required to repay the capital to its public investors; those investors must endure the unpredictable nature of the open market to price and trade their shares. After the IPO, when shares are traded in the open market, money passes between public investors. For early private investors who choose to sell shares as part of the IPO process, the IPO represents an opportunity to monetize their investment. After the IPO, once shares are traded in the open market, investors holding large blocks of shares can either sell those shares piecemeal in the open market or sell a large block of shares directly to the public, at a fixed price, through a secondary market offering; this type of offering is not dilutive. Once a company is listed, it is able to issue additional common shares in a number of different ways, one of, the follow-on offering.
This method provides capital for various corporate purposes through the issuance of equity without incurring any debt. This ability to raise large amounts of capital from the marketplace is a key reason many companies seek to go public. An IPO accords several benefits to the private company: Enlarging and diversifying equity base Enabling cheaper access to capital Increasing exposure and public image Attracting and retaining better management and employees through liquid equity participation Facilitating acquisitions Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc. There are several disadvantages to completing an initial public offering: Significant legal, account
Alcatel-Lucent S. A. was a French global telecommunications equipment company, headquartered in Boulogne-Billancourt, France. It was formed in 2006 by the merger of France-based Alcatel and U. S.-based Lucent, the latter being the successor of AT&T's Western Electric. The company focused on fixed and converged networking hardware, IP technologies and services, with operations in more than 130 countries, it had been named Industry Group Leader for Technology Hardware & Equipment sector in the 2014 Dow Jones Sustainability Indices review and listed in the 2014 Thomson Reuters Top 100 Global Innovators for the 4th consecutive year. Alcatel-Lucent owned Bell Laboratories, one of the largest research and development facilities in the communications industry, whose employees have been awarded eight Nobel Prizes and the company holds in excess of 29,000 patents. On 3 November 2016, Nokia completed the acquisition of the company and it was merged into their Nokia Networks division. Bell Labs was still maintained as an independent subsidiary of Nokia.
The Alcatel-Lucent brand has been replaced by Nokia, but it still survives under Alcatel-Lucent Enterprise, the enterprise division of Alcatel-Lucent, sold to China Huaxin in 2014. Alcatel-Lucent was formed when Alcatel merged with Lucent Technologies on December 1, 2006. However, the predecessors of the company have been a part of telecommunications industry since the late 19th century; the company has roots in two early telecommunications companies: La Compagnie Générale d'Electricité and the Western Electric Manufacturing Company. Western Electric began in 1869 when Elisha Gray and Enos N. Barton started a manufacturing firm based in Ohio. By 1880, the company had relocated to Chicago and become the largest electrical manufacturing company in the United States. In 1881, the American Bell Telephone Company, founded by Alexander Graham Bell and forerunner of American Telephone & Telegraph, purchased a controlling interest in Western Electric and made it the exclusive developer and manufacturer of equipment for the Bell telephone companies.
CGE was formed in 1898 by French engineer Pierre Azaria in the Alsace region of what was Germany and was a conglomerate involved in industries such as electricity, transportation and telecommunications. CGE would become a leader in digital communications and would be known for producing the TGV high-speed trains in France. Bell Telephone Laboratories was created in 1925 from the consolidation of the R&D organizations of Western Electric and AT&T. Bell Labs would make significant scientific advances including: the transistor, the laser, the solar cell battery, the digital signal processor chip, the Unix operating system and the cellular concept of mobile telephone service. Bell Labs researchers have won 7 Nobel Prizes. In 1925, Western Electric sold its International Western Electric Company subsidiary to ITT Corporation. CGE purchased the telecommunications part of ITT in the mid-1980s. AT&T re-entered the European telecommunications market in 1984 following the Bell System divestiture. Philips promoted the venture in part because its PRX public switching technology was ageing and it sought a partner to help fund the development costs of digital switching.
The joint company used the existing manufacturing and development facilities in The Hague, Hilversum and Malmesbury as well as its U. S. resources to adapt the 5ESS system to the European market. The joint venture company AT&T & Philips Telecommunications BV doubled annual turnover between 1984 and 1987, winning major switching and transmission contracts in the captive Netherlands market. In 1987, AT&T increased its holding to 60% and in 1990 it purchased the remainder of the Philips' holding. In 1998, Alcatel Alsthom shifted its focus to the telecommunications industry, spinning off its Alsthom activities and changing the company's name to Alcatel. AT&T spun off Lucent Technologies in April 1996 with an initial public offering. In April 2004, TCL Corporation and Alcatel announced the creation of a mobile phone manufacturing joint venture: Alcatel Mobile Phones. A year Alcatel sold its share in the joint venture but licensed the Alcatel brand name to TCL, which continues to this day under Nokia.
Facing intense competition in the telecommunications industry and Lucent Technologies merged on November 30, 2006. On April 5, 2006, Alcatel announced that it would swap its shares of Alcatel Alenia Space and Telespazio for €673 million and a 12.1% stake in Thales, a key player in the French defense industry. This increased Alcatel's stake in Thales to 20.8%. Alcatel-Lucent acquired Nortel's UMTS radio access business at the end of 2006. During 2007 the company acquired Canadian metro WDM networking supplier Tropic Networks, Inc.. Alcatel-Lucent acquired Motive, Inc. a provider of service management software for broadband and mobile data services in 2008. They had a joint venture with Dutch company Draka Holding N. V. for manufacturing optical fibre, but Draka bought out Alcatel-Lucent's 49.9% stake for €209 million in December 2007. Alcatel-Lucent's chief executive officer was Michel Combes and the non-executive chairman of the board was Philippe Camus. Camus joined the company in the third quarter of 2008, alongside Ben Verwaayen as CEO, after Alcatel-Lucent's first CEO Patricia Russo and first chairman Serge Tchuruk resigned.
An operating system is system software that manages computer hardware and software resources and provides common services for computer programs. Time-sharing operating systems schedule tasks for efficient use of the system and may include accounting software for cost allocation of processor time, mass storage and other resources. For hardware functions such as input and output and memory allocation, the operating system acts as an intermediary between programs and the computer hardware, although the application code is executed directly by the hardware and makes system calls to an OS function or is interrupted by it. Operating systems are found on many devices that contain a computer – from cellular phones and video game consoles to web servers and supercomputers; the dominant desktop operating system is Microsoft Windows with a market share of around 82.74%. MacOS by Apple Inc. is in second place, the varieties of Linux are collectively in third place. In the mobile sector, use in 2017 is up to 70% of Google's Android and according to third quarter 2016 data, Android on smartphones is dominant with 87.5 percent and a growth rate 10.3 percent per year, followed by Apple's iOS with 12.1 percent and a per year decrease in market share of 5.2 percent, while other operating systems amount to just 0.3 percent.
Linux distributions are dominant in supercomputing sectors. Other specialized classes of operating systems, such as embedded and real-time systems, exist for many applications. A single-tasking system can only run one program at a time, while a multi-tasking operating system allows more than one program to be running in concurrency; this is achieved by time-sharing, where the available processor time is divided between multiple processes. These processes are each interrupted in time slices by a task-scheduling subsystem of the operating system. Multi-tasking may be characterized in co-operative types. In preemptive multitasking, the operating system slices the CPU time and dedicates a slot to each of the programs. Unix-like operating systems, such as Solaris and Linux—as well as non-Unix-like, such as AmigaOS—support preemptive multitasking. Cooperative multitasking is achieved by relying on each process to provide time to the other processes in a defined manner. 16-bit versions of Microsoft Windows used cooperative multi-tasking.
32-bit versions of both Windows NT and Win9x, used preemptive multi-tasking. Single-user operating systems have no facilities to distinguish users, but may allow multiple programs to run in tandem. A multi-user operating system extends the basic concept of multi-tasking with facilities that identify processes and resources, such as disk space, belonging to multiple users, the system permits multiple users to interact with the system at the same time. Time-sharing operating systems schedule tasks for efficient use of the system and may include accounting software for cost allocation of processor time, mass storage and other resources to multiple users. A distributed operating system manages a group of distinct computers and makes them appear to be a single computer; the development of networked computers that could be linked and communicate with each other gave rise to distributed computing. Distributed computations are carried out on more than one machine; when computers in a group work in cooperation, they form a distributed system.
In an OS, distributed and cloud computing context, templating refers to creating a single virtual machine image as a guest operating system saving it as a tool for multiple running virtual machines. The technique is used both in virtualization and cloud computing management, is common in large server warehouses. Embedded operating systems are designed to be used in embedded computer systems, they are designed to operate on small machines like PDAs with less autonomy. They are able to operate with a limited number of resources, they are compact and efficient by design. Windows CE and Minix 3 are some examples of embedded operating systems. A real-time operating system is an operating system that guarantees to process events or data by a specific moment in time. A real-time operating system may be single- or multi-tasking, but when multitasking, it uses specialized scheduling algorithms so that a deterministic nature of behavior is achieved. An event-driven system switches between tasks based on their priorities or external events while time-sharing operating systems switch tasks based on clock interrupts.
A library operating system is one in which the services that a typical operating system provides, such as networking, are provided in the form of libraries and composed with the application and configuration code to construct a unikernel: a specialized, single address space, machine image that can be deployed to cloud or embedded environments. Early computers were built to perform a series of single tasks, like a calculator. Basic operating system features were developed in the 1950s, such as resident monitor functions that could automatically run different programs in succession to speed up processing. Operating systems did not exist in their more complex forms until the early 1960s. Hardware features were added, that enabled use of runtime libraries and parallel processing; when personal computers became popular in the 1980s, operating systems were made for them similar in concept to those used on larger computers. In the 1940s, the earliest electronic digital systems had no operating systems.
Electronic systems of this time were programmed on rows of mechanical switches or by jumper wires on plug boards. These were special-purpose systems that, for example, generated ballistics tables for the military or controlled the pri
A router is a networking device that forwards data packets between computer networks. Routers perform the traffic directing functions on the Internet. Data sent through the internet, such as a web page or email, is in the form of data packets. A packet is forwarded from one router to another router through the networks that constitute an internetwork until it reaches its destination node. A router is connected to two or more data lines from different networks; when a data packet comes in on one of the lines, the router reads the network address information in the packet to determine the ultimate destination. Using information in its routing table or routing policy, it directs the packet to the next network on its journey; the most familiar type of routers are home and small office routers that forward IP packets between the home computers and the Internet. An example of a router would be the owner's cable or DSL router, which connects to the Internet through an Internet service provider. More sophisticated routers, such as enterprise routers, connect large business or ISP networks up to the powerful core routers that forward data at high speed along the optical fiber lines of the Internet backbone.
Though routers are dedicated hardware devices, software-based routers exist. When multiple routers are used in interconnected networks, the routers can exchange information about destination addresses using a routing protocol; each router builds up a routing table listing the preferred routes between any two systems on the interconnected networks. A router has two types of network element components organized onto separate planes: Control plane: A router maintains a routing table that lists which route should be used to forward a data packet, through which physical interface connection, it does this using internal preconfigured directives, called static routes, or by learning routes dynamically using a routing protocol. Static and dynamic routes are stored in the routing table; the control-plane logic strips non-essential directives from the table and builds a forwarding information base to be used by the forwarding plane. Forwarding plane: The router forwards data packets between incoming and outgoing interface connections.
It forwards them to the correct network type using information that the packet header contains matched to entries in the FIB supplied by the control plane. A router may have interfaces for different types of physical layer connections, such as copper cables, fiber optic, or wireless transmission, it can support different network layer transmission standards. Each network interface is used to enable data packets to be forwarded from one transmission system to another. Routers may be used to connect two or more logical groups of computer devices known as subnets, each with a different network prefix. Routers may provide connectivity within enterprises, between enterprises and the Internet, or between internet service providers' networks; the largest routers may be used in large enterprise networks. Smaller routers provide connectivity for typical home and office networks. All sizes of routers may be found inside enterprises; the most powerful routers are found in ISPs, academic and research facilities.
Large businesses may need more powerful routers to cope with ever-increasing demands of intranet data traffic. A hierarchical internetworking model for interconnecting routers in large networks is in common use. Access routers, including small office/home office models, are located at home and customer sites such as branch offices that do not need hierarchical routing of their own, they are optimized for low cost. Some SOHO routers are capable of running alternative free Linux-based firmware like Tomato, OpenWrt or DD-WRT. Distribution routers aggregate traffic from multiple access routers. Distribution routers are responsible for enforcing quality of service across a wide area network, so they may have considerable memory installed, multiple WAN interface connections, substantial onboard data processing routines, they may provide connectivity to groups of file servers or other external networks. In enterprises, a core router may provide a collapsed backbone interconnecting the distribution tier routers from multiple buildings of a campus, or large enterprise locations.
They lack some of the features of edge routers. External networks must be considered as part of the overall security strategy of the local network. A router may include a firewall, VPN handling, other security functions, or these may be handled by separate devices. Routers commonly perform network address translation which restricts connections initiated from external connections but is not recognised as a security feature by all experts.. Some experts argue that open source routers are more secure and reliable than closed source routers because open source routers allow mistakes to be found and corrected. Routers are often distinguished on the basis of the network in which they operate. A router in a local area network of a single organisation is called an interior router. A router, operated in the Internet backbone is described as exterior router. While a router that connects a LAN with the Internet or a wide area network is called a border router, or gateway router. Routers intended for ISP and major enterprise connectivity exchange routing information using the Border Gateway Protocol.
RFC 4098 standard defines the types of BGP routers according to their functions: Edge router: Also called a provider edge router, is placed at the edge of an ISP network. The router uses External BGP to EBGP
. AT&T Corp. the American Telephone and Telegraph Company, is the subsidiary of AT&T that provides voice, video and Internet telecommunications and professional services to businesses and government agencies. During its long history, AT&T was at times the world's largest telephone company, the world's largest cable television operator, a regulated monopoly. At its peak in the 1950s and 1960s, it employed one million people and its revenue was $3 billion annually. In 2005, AT&T was purchased by Baby Bell and former subsidiary SBC Communications for more than $16 billion. SBC changed its name to AT&T Inc. AT&T started with Bell Patent Association, a legal entity established in 1874 to protect the patent rights of Alexander Graham Bell after he invented the telephone system. A verbal agreement, it was formalized in writing in 1875 as Bell Telephone Company. In 1880 the management of American Bell had created; the project was the first of its kind to create a nationwide long-distance network with a commercially viable cost-structure.
The project was formally incorporated in New York State as a separate company named American Telephone and Telegraph Company on March 3, 1885. Starting from New York, its long-distance telephone network reached Chicago, Illinois, in 1892, with its multitudes of local exchanges continuing to stretch further and further yearly creating a continent-wide telephone system. On December 30, 1899, the assets of American Bell were transferred into its subsidiary American Telephone and Telegraph Company. With this assets transfer on the second to last day of the 19th Century, AT&T became the parent of both American Bell and the Bell System. AT&T was involved in the telephone business and, although it was a partner with RCA, was reluctant to see radio grow because such growth might diminish the demand for wired services, it established station WEAF in New York as. AT&T could provide no programming, but anyone who wished to broadcast a message could pay a "toll" to AT&T and air the message publicly; the original studio was the size of a telephone booth.
The idea, did not take hold, because people would pay to broadcast messages only if they were sure that someone was listening. As a result, WEAF began broadcasting entertainment material, drawing amateur talent found among its employees. Opposition to AT&T's expansion into radio and an agreement with the National Broadcasting Company to lease long distance lines for their broadcasts resulted in the sale of the station and its developing network of affiliates to NBC. Throughout most of the 20th century, AT&T held a monopoly on phone service in the United States and Canada through a network of companies called the Bell System. At this time, the company was nicknamed Ma Bell. On April 30, 1907, Theodore Newton Vail became President of AT&T. Vail believed in the superiority of one phone system and AT&T adopted the slogan "One Policy, One System, Universal Service." This would be the company's philosophy for the next 70 years. Under Vail, AT&T began buying up many of the smaller telephone companies including Western Union telegraph.
These actions brought unwanted attention from antitrust regulators. Anxious to avoid action from government antitrust suits, AT&T and the federal government entered into an agreement known as the Kingsbury Commitment. In the Kingsbury Commitment, AT&T and the government reached an agreement that allowed AT&T to continue operating as a monopoly. While AT&T periodically faced scrutiny from regulators, this state of affairs continued until the company's breakup in 1984; the United States Justice Department opened the case United States v. AT&T in 1974; this was prompted by suspicion that AT&T was using monopoly profits from its Western Electric subsidiary to subsidize the cost of its network, a violation of anti-trust law. A settlement to this case was finalized in 1982, leading to the division of the company on January 1, 1984 into seven Regional Bell Operating Companies known as Baby Bells; these companies were: Ameritech, acquired by SBC in 1999, now part of AT&T Inc. Bell Atlantic, which acquired GTE in 2000 BellSouth, acquired by AT&T Inc. in 2006 NYNEX, acquired by Bell Atlantic in 1996, now part of Verizon Communications Pacific Telesis, acquired by SBC in 1997, now part of AT&T Inc.
Southwestern Bell, which acquired AT&T Corp. in 2005 US West, acquired by Qwest in 2000, which in turn was acquired by CenturyLink in 2011Post-breakup, the former parent company's main business was now AT&T Communications, which focused on long distance services, with other non-RBOC activities. On January 31, 2005, the "Baby Bell" company SBC Communications announced its plans to acquire "Ma Bell" AT&T Corp. for $16 billion. SBC announced in October 2005 that it would shed the "SBC" brand and take the AT&T brand along with the "T" NYSE ticker symbol. Merger approval concluded on November 18, 2005. From 1885 to 1910, AT&T was headquartered at 125 Milk Street in Boston. With its expansion it moved to a headquarters on 195 Broadway; the property belonged to Western Union, of which AT&T held a controlling interest until 1913 when AT&T divested its interest as part of the Kingsbury Commitment. Construction of the current building began in 1912. Designe
Nokia Bell Labs is an industrial research and scientific development company owned by Finnish company Nokia. Its headquarters are located in New Jersey. Other laboratories are located around the world. Bell Labs has its origins in the complex past of the Bell System. In the late 19th century, the laboratory began as the Western Electric Engineering Department and was located at 463 West Street in New York City. In 1925, after years of conducting research and development under Western Electric, the Engineering Department was reformed into Bell Telephone Laboratories and under the shared ownership of American Telephone & Telegraph Company and Western Electric. Researchers working at Bell Labs are credited with the development of radio astronomy, the transistor, the laser, the photovoltaic cell, the charge-coupled device, information theory, the Unix operating system, the programming languages C, C++, S. Nine Nobel Prizes have been awarded for work completed at Bell Laboratories. In 1880, when the French government awarded Alexander Graham Bell the Volta Prize of 50,000 francs (approximately US$10,000 at that time for the invention of the telephone, he used the award to fund the Volta Laboratory in Washington, D.
C. in collaboration with Sumner Tainter and Bell's cousin Chichester Bell. The laboratory was variously known as the Volta Bureau, the Bell Carriage House, the Bell Laboratory and the Volta Laboratory, it focused on the analysis and transmission of sound. Bell used his considerable profits from the laboratory for further research and education to permit the " diffusion of knowledge relating to the deaf": resulting in the founding of the Volta Bureau, located at Bell's father's house at 1527 35th Street N. W. in Washington, D. C, its carriage house became their headquarters in 1889. In 1893, Bell constructed a new building close by at 1537 35th Street N. W. to house the lab. This building was declared a National Historic Landmark in 1972. After the invention of the telephone, Bell maintained a distant role with the Bell System as a whole, but continued to pursue his own personal research interests; the Bell Patent Association was formed by Alexander Graham Bell, Thomas Sanders, Gardiner Hubbard when filing the first patents for the telephone in 1876.
Bell Telephone Company, the first telephone company, was formed a year later. It became a part of the American Bell Telephone Company. American Telephone & Telegraph Company and its own subsidiary company, took control of American Bell and the Bell System by 1889. American Bell held a controlling interest in Western Electric whereas AT&T was doing research into the service providers. In 1884, the American Bell Telephone Company created the Mechanical Department from the Electrical and Patent Department formed a year earlier. In 1896, Western Electric bought property at 463 West Street to station their manufacturers and engineers, supplying AT&T with their product; this included everything from telephones, telephone exchange switches, transmission equipment. In 1925, Bell Laboratories was developed to better consolidate the research activities of the Bell System. Ownership was evenly split between Western Electric and AT&T. Throughout the next decade the AT&T Research and Development branch moved into West Street.
Bell Labs carried out consulting work for the Bell Telephone Company, U. S. government work, a few workers were assigned to basic research. The first president of research at Bell Labs was Frank B. Jewett who stayed there until 1940. By the early 1940s, Bell Labs engineers and scientists had begun to move to other locations away from the congestion and environmental distractions of New York City, in 1967 Bell Laboratories headquarters was relocated to Murray Hill, New Jersey. Among the Bell Laboratories locations in New Jersey were Holmdel, Crawford Hill, the Deal Test Site, Lincroft, Long Branch, Neptune, Piscataway, Red Bank and Whippany. Of these, Murray Hill and Crawford Hill remain in existence; the largest grouping of people in the company was in Illinois, at Naperville-Lisle, in the Chicago area, which had the largest concentration of employees prior to 2001. There were groups of employees in Indianapolis, Indiana. Since 2001, many of the former locations closed; the Holmdel site, a 1.9 million square foot structure set on 473 acres, was closed in 2007.
The mirrored-glass building was designed by Eero Saarinen. In August 2013, Somerset Development bought the building, intending to redevelop it into a mixed commercial and residential project. A 2012 article expressed doubt on the success of the newly named Bell Works site however several large tenants had announced plans to move in through 2016 and 2017 Bell Laboratories was, is, regarded by many as the premier research facility of its type, developing a wide range of revolutionary technologies, including radio astronomy, the transistor, the laser, information theory, the operating system Unix, the programming languages C and C++, solar cells, the CCD, floating-gate MOSFET, a whole host of optical and wired communications
Dial-up Internet access
Dial-up Internet access is a form of Internet access that uses the facilities of the public switched telephone network to establish a connection to an Internet service provider by dialing a telephone number on a conventional telephone line. The user's computer or router uses an attached modem to encode and decode information into and from audio frequency signals, respectively. In 1979, Tom Truscott and Steve Bellovin, graduates of Duke University, created an early predecessor to dial-up Internet access called the USENET; the USENET was a UNIX based system that used a dial-up connection to transfer data through telephone modems. Dial-up Internet has been around since the 1980s via public providers such as NSFNET-linked universities and was first offered commercially in July 1992 by Sprint. Despite losing ground to broadband since the mid-2000s, dial-up is still used where other forms are not available or where the cost is too high, such as in some rural or remote areas. Dial-up connections to the Internet require no infrastructure other than the telephone network and the modems and servers needed to make and answer the calls.
Where telephone access is available, dial-up is the only choice available for rural or remote areas, where broadband installations are not prevalent due to low population density and high infrastructure cost. Dial-up access may be an alternative for users on limited budgets, as it is offered free by some ISPs, though broadband is available at lower prices in many countries due to market competition. Dial-up requires time to establish a telephone connection and perform configuration for protocol synchronization before data transfers can take place. In locales with telephone connection charges, each connection incurs an incremental cost. If calls are time-metered, the duration of the connection incurs costs. Dial-up access is a transient connection, because either the user, ISP or phone company terminates the connection. Internet service providers will set a limit on connection durations to allow sharing of resources, will disconnect the user—requiring reconnection and the costs and delays associated with it.
Technically inclined users find a way to disable the auto-disconnect program such that they can remain connected for more days than one. A 2008 Pew Research Center study stated that only 10% of US adults still used dial-up Internet access; the study found. Users cited lack of infrastructure as a reason less than stating that they would never upgrade to broadband; that number had fallen to 6% by 2010, to 3% by 2013. The CRTC estimated that there were 336,000 Canadian dial-up users in 2010. Broadband Internet access via cable, digital subscriber line, satellite and FTTx has replaced dial-up access in many parts of the world. Broadband connections offer speeds of 700 kbit/s or higher for two-thirds more than the price of dial-up on average. In addition broadband connections are always on, thus avoiding the need to connect and disconnect at the start and end of each session. Broadband does not require exclusive use of a phone line and so one can access the Internet and at the same time make and receive voice phone calls without having a second phone line.
However, many rural areas still remain without high speed Internet despite the eagerness of potential customers. This can be attributed to population, location, or sometimes ISPs' lack of interest due to little chance of profitability and high costs to build the required infrastructure; some dial-up ISPs have responded to the increased competition by lowering their rates and making dial-up an attractive option for those who want email access or basic web browsing. Dial-up Internet access has undergone a precipitous fall in usage, approaches extinction as modern users turn towards broadband. In contrast to the year 2000 when about 34% of the U. S. population used dial-up, this dropped to 3% in 2013. One contributing factor to the extinction of dial-up is the bandwidth requirements of newer computer programs, like antivirus software, which automatically download sizable updates in the background when a connection to the internet is first made; these background downloads can take several minutes or longer and, until all updates are completed, they can impact the amount of bandwidth available to other applications like web browsers.
Since an "always on" broadband is the norm expected by most newer applications being developed, this automatic upload trend in the background is expected to continue to eat away at dial-up's available bandwidth to the detriment of dial-up users' applications. Many newer websites now assume broadband speeds as the norm and when confronted with slower dial-up speeds may drop these slower connections to free up communication resources. On websites that are designed to be more dial-up friendly, use of a reverse proxy prevents dial-ups from being dropped as but can introduce long wait periods for dial-up users caused by the buffering used by a reverse proxy to bridge the different data rates. Modern dial-up modems have a maximum theoretical transfer speed of 56 kbit/s, although in most cases, 40–50 kbit/s is the norm. Factors such as phone line noise as well as the quality of the modem itself play a large part in determining connection speeds; some connections may be as low as 20 kbit/s in noisy environments, such as in a hotel room where the phone line is shared with many extensions, or in a rural area, many miles from the phone exchange.
Other factors such as long loops, loading coils, pair gain, electric fences, digital loop carriers can slow con