AOL to Charge Same Price for Dialup or Broadband
February 23rd, 2006
AOL is nudging the 75% of its subscribers who still use dialup over to broadband by increasing the price of its dialup service. AP reports that beginning March 9, AOL’s price for broadband and dialup will be the same: $25.90 per month.
AOL thinks greater adoption of broadband will increase overall usage, thereby increasing advertising revenue. But they still need to address the issues they’ve had for years: the perception of AOL as Internet training wheels, and the inability to retain members over the long haul.
February 23rd, 2006 at 9:34 pm
My favorite subject, Craig. I think the plan will backfire on AOL once their current customers learn more about broadband. In addition, it may give incentive to the laggards who’d been avoiding subscribing to broadband due to the additional cost .
With that said, broadband, depending on your location runs anywhere from 30$ – 60$/month, so the additional cost may just be an annoyance rather than the straw that breaks the camel’s back.