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AOL to offer low-cost no-frills service
New York, Oct 15: AOL may finally be facing up to reality -- that fewer of its customers want to pay $24 per month for dial-up Internet service anymore.
New York, Oct 15: AOL may finally be facing up to reality -- that fewer of its customers want to pay $24 per month for dial-up Internet service anymore.
A source familiar with AOL plans said the Dulles, Virginia-based online unit of media conglomerate AOL Time Warner will offer a no-frills dial-up Internet service at less than half the price of the flagship AOL service.
A company spokesman declined to comment on the plans.
The service, which would be available in a few months under the long-forgotten Netscape brand name, will cost $9.95, compared to $23.95 for the main AOL service.
"It's a way for them to retain AOL customers," said David Joyce, an analyst at Guzman & Co., adding that the strategy could also cut into AOL's profit margins.
Bureau Report
A company spokesman declined to comment on the plans.
The service, which would be available in a few months under the long-forgotten Netscape brand name, will cost $9.95, compared to $23.95 for the main AOL service.
"It's a way for them to retain AOL customers," said David Joyce, an analyst at Guzman & Co., adding that the strategy could also cut into AOL's profit margins.
Bureau Report