AOL: Fees Up 20 Percent for Some Plans with Phone Help
Date : 11 Jul 2008 Category : Technology
NewsFactor NetworkAOL's cheapest dial-up Internet access plan is going from $9.99 to $11.99 to offset costs of round-the-clock help by telephone. Subscribers can keep the $9.99 rate if they forgo full phone support, but they must actively change their plans to avoid an automatic price increase.
Millions of AOL users have already ditched subscription plans entirely now that the company is giving away free AOL.com e-mail accounts and other features as part of a push to generate more revenue from its free, ad-supported Web sites.
AOL's parent company, Time Warner Inc., is even working on splitting its access and advertising businesses, a move that could lead to the sale of one or both.
As of March 31, AOL had 8.7 million U.S. subscribers for Internet access, fewer than a third of its peak of 26.7 million in 2002. AOL no longer breaks down subscribers by pricing plan, though it said most are on a $25.90 premium plan, which remains unchanged.
The low-end plan offers either unlimited dial-up access with basic security software, or 10 hours of dial-up with additional security services.
Even with the price increase, AOL's plans are still competitive. EarthLink Inc.'s cheapest dial-up plan, at $12.50 a month, requires a year of prepayment, while United Online Inc.'s Juno and NetZero $9.95 services charge for phone help -- Juno also requires a year's commitment.
Of course, if you have no need for dial-up access or extras like technical support, you can cancel your account and still keep your e-mail address.