MSN Offers Cost Break for AOL Dial-Up Customers! Yea!

Discussion in 'Windows Media Player' started by perryneheum, Mar 29, 2006.

  1. perryneheum

    perryneheum Guest

    For those of us AOL fed-up dial-up captives of the cost increase to
    $25.90, MSN might have a $17.95/month solution. If you're stuck for
    now with AOL, like me, ANY alternative is probaly welcome!

    "Microsoft Cuts Internet Dial-Up Price to Lure AOL Users"

    By Sara Kehaulani Goo
    Washington Post Staff Writer
    Wednesday, March 29, 2006; D04

    Microsoft Corp.'s MSN made an aggressive bid yesterday to take dial-up
    Internet subscribers from America Online Inc., announcing that it would
    cut the price of a service that has been dwindling in popularity.

    Microsoft's price cut, to $17.95 a month from $21.95 for a dial-up
    service that includes e-mail, parental monitoring and photo services,
    is a sharp departure from AOL's strategy of pushing dial-up customers
    to switch to broadband. Last month, Dulles-based AOL announced that it
    would increase the monthly fee it charges its dial-up subscribers by
    $2, to $25.90. The AOL price increase began taking effect earlier this

    The long-term market for subscribers who log on to the Internet the
    old-fashioned way is not bright, as consumers switch to faster
    broadband service. The price war reflects the fierce competition for
    consumers among online portals that want to serve as users' home pages.
    "We definitely think there's some opportunity for AOL dial-up
    subscribers to explore alternatives when they see a price increase,"
    said Kevin Mizuhara, director of marketing for MSN Access dial-up
    service. "While it's a declining market, we do believe there's going to
    be a continued market for dial-up access."

    As of 2005, 68 percent of North American households had Internet
    service, and that number is projected to be 78 percent by 2010,
    Forrester Research said. The company forecasts that by 2010, 62 percent
    of U.S. households will have broadband service, indicating that access
    to broadband and price will encourage many users to drop the slower
    dial-up service. There are more than 30 million dial-up households,
    Forrester said.

    When AOL announced plans to raise its fees for dial-up service, the
    move was viewed as an effort to push subscribers into signing up for
    AOL's broadband services, which are bundled with Internet service
    providers via cable or DSL and offered for the new $25.90 price. AOL's
    base of dial-up subscribers has been shrinking rapidly; 7 million
    customers have dropped out in the past few years. By squeezing the
    difference between dial-up and broadband prices, AOL figured it could
    get its customers to upgrade.

    An AOL spokeswoman declined to comment on the results of those efforts
    and about the competition from MSN.

    For now, analyst Charles Golvin said, there are still a healthy number
    of dial-up users to make it worth MSN's effort. But the difficulty, he
    said, will be to convince AOL subscribers that it is worth the extra
    effort to change their e-mail address and contact lists to save a few
    bucks a month.

    "People don't like to have to send an e-mail telling everyone about
    their new e-mail address," said Golvin, principal analyst at Forrester.
    "It's a really sticky point."

    MSN said it will begin an online marketing campaign to lure AOL users
    and emphasize that those who switch can still keep some of their most
    treasured features of AOL: instant messaging and buddy lists.

    © 2006 The Washington Post Company
    perryneheum, Mar 29, 2006
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  2. perryneheum

    Laciji Guest

    Thats stupid. AOL never did care. MSN sucks.
    Laciji, Mar 30, 2006
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  3. Dear Laciji:

    Dial-up sucks, doesn't matter whose.

    David A. Smith
    AOL *and* Cox, 'cause I can use AOL in Japan (for a huge fee...)
    N:dlzc D:aol T:com \(dlzc\), Mar 31, 2006
  4. perryneheum

    Citizen Guest

    Screw both AOL and MSN,

    You can get great dial-up service for $4.95 a month from

    Citizen, Mar 31, 2006
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