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LOW COST OR FREE INTERNET ACCESS: |
Friday January 9, 2004 AOL Blinks After losing some 2 million subscribers last year, Time Warner's America Online finally blinked. The world's largest ISP yesterday launched a new low-cost dial-up service under the Netscape banner, hoping to keep some of the subscribers who are fleeing to cheaper competitors. The Netscape Internet Service offers unlimited access and web-based email for $9.95 per month -- the same priced charged by United Online's NetZero and Juno. Investors must think AOL will be successful in retaining a significant number of its users: When rumors of its $9.95 offering hit last October, United's stock took an 18% hit, and hasn't recovered. To understand why competitors have cause for concern, consider this likely scenario of an AOL user who Dec ides that $23.90 per month is too steep for dial-up service. Perhaps she has heard about NetZero's $9.95 deal, or its $14.95 "high-speed" service (still dial-up, but a bit faster than normal because of special downloading technology for certain files and pictures)...Source:
The Motley Fool
by
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