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Free AOL May Soon be Available

As part of a new strategy to retain its customer base and attract additional subscribers, AOL may soon offer its entire menu of services – including e-mail, free of charge to anyone with a high speed Internet connection, according to a recent Wall Street Journal article.

The Proposed Free Strategy

Through out the last several years, the Time Warner online subsidiary has experienced a significant dip in AOL subscriptions, as many consumers have moved to high speed connections. In fact, since its peak of 26.7 million subscribers in September 2002, numbers have steadily decreased to 18.6 million as of March of this year.

By eliminating the subscription fee entirely for people with alternate Internet access, including those who subscribe to rival dial-up Internet providers, the company hopes to attract e-mail customers who might otherwise leave AOL if forced to pay, in favor of free e-mail service. However, subscribers with dial-up Internet service through AOL still must pay the required monthly fee.

The Proposal’s Affects on Current AOL Customers

Currently, individuals can access most of the services AOL offers through its Web site, including a free aim.com account. However, the Web site does not offer subscribers many other features, such as an aol.com account, virus protection and other security software.

This proposed plan should not restrain current AOL subscriber’s access. Current subscribers will be able to retain their aol.com account, as well as continue to use the AOL software for which many customers have grown accustomed. AOL software subscribers will also retain access to instant messaging, Web journals and other services without having to download separate software or figure out Web-based options. This could potentially ease aol.com subscribers through the transition and attract new members.

What AOL Hopes to Gain

While AOL is still one of the top Web destinations with 107 million visitors a month, the company is up against some stiff competition due to widespread adoption of high speed Internet service and free web-based e-mail service. In order to remain competitive, AOL has been working to transform itself from an Internet-access provider into an advertising-supported business, similar to Yahoo or Google whose business model is based on advertising.

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