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Summary:

Sometimes I just wonder if even AOL knows what the f*ck is going on. Now they are backing out of broadband market is the Red States. Crazy? I don’t get it, but then who knows after all their brains are AWOL.

Sometimes I just wonder if even AOL knows what the f*ck is going on. Now they are backing out of broadband market is the Red States. Crazy? I don’t get it, but then who knows after all their brains are AWOL.

By Om Malik

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  1. But you can still get Time Warner Cable if you’re in markets like New York, and then they can sell you AOL for Broadband.

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  2. Statement on AOL’s site might explain what is happening…

    Statement From America Online, Inc. Concerning Broadband Service

    A story that ran in the Associated Press misconstrues what America Online is doing in nine southern states with its broadband customers.

    Two years ago we announced that we were pursuing a new broadband strategy. Where once AOL provided wholesale connectivity plus the AOL service to our customers, now we simply provide the AOL service, which can be added to any DSL or cable connection.

    In addition, in the past 12 months, DSL prices have been dropping across the industry. AOL has been working with BellSouth towards an arrangement that takes advantage of these price decreases and enables us to pass them along to our members.

    We are contacting existing BellSouth/AOL members who have been receiving a single-price bundle ($54.95) of DSL connectivity and the AOL service directly from America Online, and asking them to migrate to AOL’s premium broadband service and a new, unbundled, lower-cost BellSouth FastAccess DSL connection.

    Only AOL members subscribing to the AOL bundled DSL service provided by BellSouth are impacted by the change. AOL members receiving broadband services from any other provider [Bright House Networks and Time Warner Cable] are not effected in any way by this change and will continue to receive the service they enjoy today.

    If customers choose not to continue high-speed service then they can maintain their AOL account over dial-up.

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  3. Yes, they actually made the decision to stop offering the PIPE earlier this year. Part of some grand idiotic strategy to sell people e-mail and Sugar Ray concerts for a $15 a month fee on TOP of what they pay for broadband from some other ISP.

    I think it will go down as THE dumbest move in the history of internet business.

    http://www.broadbandreports.com/shownews/56671

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  4. AOL abandons the broadband market

    So, AOL will bet its business on dial-up subscriptions that are more expensive than competing DSL, and it will sell cheap PCs to consumers (possibly at a loss) to let them connect on the crappy dial-up connection.

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  5. Dam – now where did my brain go?

    I totally agree with Om Malik on this one. AOL has defined stupidity in our world – and it’s disheartening to watch them systematically destroy everything they built. This points out the secret story behind all those lawsuits against Microsoft. Netscap…

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