AOL Rolls Out DSL Option, Expands VoIP Reach

Even as AOL prepares for the full-tilt launch of its ad-supported web strategy, the company isn’t losing sight of its roots as an ISP. The Time Warner subsidiary that once ruled the online roost — and is still the largest provider with 21.7 million subs — is trying to staunch the flow of dial-up subs to other providers with AOL High Speed, a $29.95 combo DSL-email-content package, now trialing in Chicago and Washington D.C. The cost is only $7 higher than the current dial-up plan. This also could benefit its broadband strategy by enticing holdouts to make the transition.
Alice Lomax at The Motley Fool describes the offer as perhaps “the most important move the company could make.” She warns of the possible impact of the SBC fire sale but adds, “When you take into consideration the fact that AOL has been bolstering its premium content and adding on benefits like anti-spam and anti-virus capabilities, it certainly seems that it’s finally getting all its ducks in a row.”
Also on the provider side, AOL is pushing forward with its VoIP plans, rolling out nationally in Canada. Ad revenues are good now but it’s those sub fees that make up for the lean times.
Related: Cost Of SBC DSL Dips Below Dial-Up; Could Lure More Broadband Users

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