At that time the subscription fees did not cover the cost of the hardware. Subscription fees were also falling due to decreasing barriers of entry into dialup

At that time the subscription fees did not cover the cost of the hardware. Subscription fees were also falling due to decreasing barriers of entry into dialup and internet providers. Alternatives such as advertising did not cover the cost of the net-pcs either. For cellular phones, the $200-300 hardware cost is easily recouped over two years on a $70.00 monthly plan.