Starting next month, America Online will increase the price of its most popular dial-up access plan in the United States to encourage subscribers to adopt the company's new broadband access plan.
Currently, subscribers to the AOL With Unlimited Dial-Up Plan pay $23.90 per month; but starting on March 9, they will pay $2 more per month. AOL began notifying subscribers about the impending price increase this month.
At the new rate of $25.90 per month, dial-up subscribers will be paying the same amount as or only a few dollars less than they would for the new AOL High Speed broadband plan, announced in January and available now.
Broadband Pricing
AOL High Speed subscribers get the same proprietary content and services as dial-up subscribers but with a broadband connection, which enhances the online experience, especially with regard to multimedia content.
AOL High Speed subscribers pay $25.90 per month if AT&T, Charter Communications, Verizon Communications, Qwest Communications International, or Time Warner provides their access, and $29.90 per month if they are served by BellSouth.
Though it may seem like a no-brainer for subscribers of AOL's unlimited dial-up plan to switch to AOL High Speed, they must take into account various one-time charges involved in the transition. The price and nature of these one-time charges vary with the access provider but may include activation, shipping, hardware, and installation fees.
Some AOL High Speed plans also include a one-year commitment requirement, and cancellation fees apply if the subscriber exits early. AOL High Speed plans are currently available to most U.S. AOL subscribers, but not to all of them.
Losing Subscribers
AOL has been steadily losing U.S. subscribers in recent years as people have graduated from dial-up to broadband access. AOL used to offer subscription packages bundled with broadband access but stopped doing so more than a year ago, AOL spokeswoman Anne Bentley said. Those plans were pricey, beginning at $44.95 per month. The company now is pricing its broadband packages more competitively.
AOL, a Time Warner unit, hopes that AOL High Speed will help it retain its subscribers and attract new ones. AOL now has about 19.5 million U.S. subscribers, most of whom are on the $23.90-per-month unlimited dial-up plan, Bentley said.
Less-expensive dial-up plans that cover a limited amount of connection time per month are available from AOL, and the company also offers a $14.95-per-month plan that includes its proprietary content and services but no bundled Internet access of any sort. Subscribers to the latter service have to obtain Internet access independently, though AOL does partner with some access providers to offer special access prices on that plan.
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