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AOL to Raise Dialup Prices

Posted by ScuttleMonkey on Wed Feb 22, 2006 05:18 PM
from the going-the-way-of-the-dodo dept.
United Bimmer writes "America Online has announced that it's going to raise the price on dialup users in an attempt to encourage them to upgrade to broadband. The new rates will near $26 a month, already drastically higher than the market norm for dialup access. This will bring the dialup prices to almost the exact same per month as broadband depending on your plan. However through this, they do still offer an unadvertised lower price for those who can't get or don't want broadband can request lower-priced plans, including an unadvertised offering of about $18 with a one-year commitment."
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  • Ding! (Score:5, Funny)

    by darth_MALL (657218) on Wednesday February 22 2006, @05:19PM (#14780176)
    You've Got Inflation!
    • Re:Ding! by bitt3n (Score:2) Wednesday February 22 2006, @11:54PM
      • Re:Ding! by xtreme.hell (Score:1) Thursday February 23 2006, @02:01AM
    • Re:Ding! by CodyBaker (Score:1) Thursday February 23 2006, @08:45AM
    • Re:Ding! by Asphalt (Score:1) Thursday February 23 2006, @10:44AM
      • Re:Ding! by MarkGriz (Score:2) Thursday February 23 2006, @01:41PM
    • 5 replies beneath your current threshold.
  • I thought broadband was their enemy? by Radres (Score:2) Wednesday February 22 2006, @05:20PM
  • Well that's nice of them. (Score:5, Funny)

    by andy753421 (850820) on Wednesday February 22 2006, @05:21PM (#14780187)
    (http://moacad.com/index.php?title=User:Andy)
    Less AOL users and more boadband users.. how could it get any better?
  • Neat! (Score:5, Funny)

    by TheGhostOfDerrida (953992) on Wednesday February 22 2006, @05:21PM (#14780188)
    So now I can get dial-up for the same low price as broadband? Wait...
  • Encourage? by imboboage0 (Score:2) Wednesday February 22 2006, @05:22PM
  • Holy Crap (Score:4, Insightful)

    1. Give crappy dial-up service
    2. Give crappy broadband service
    3. Increase the price of your crappy dial-up service
    4. Profit!!!! Or go out of business.

    Another failed attempt to fill in step 3.
    • Re:Holy Crap by Radres (Score:2) Wednesday February 22 2006, @05:24PM
      • Re:Holy Crap by Anonymous Coward (Score:1) Wednesday February 22 2006, @05:28PM
        • Re:Holy Crap by Anonymous Coward (Score:1) Wednesday February 22 2006, @08:26PM
      • 1 reply beneath your current threshold.
  • This is ludicrous by rehtonAesoohC (Score:2) Wednesday February 22 2006, @05:24PM
  • downward spiral by chrisjbuck (Score:1) Wednesday February 22 2006, @05:24PM
  • by Anonymous Coward on Wednesday February 22 2006, @05:25PM (#14780232)
    This will certainly chase away many of their current customers. I am unable to get DSL or Cable and Sattelite is way too expensive. If dialup prices are raised by AOL, I'm sure that many will switch to a less expensive ISP.
  • I'm Worried... (Score:5, Funny)

    by Your Anus (308149) on Wednesday February 22 2006, @05:25PM (#14780237)
    (http://www.marsinvestigations.net/ | Last Journal: Tuesday September 28 2004, @03:50PM)
    When I upgrade to broadband, and then cancel my service, will I continue to get billed for it anyway at the braodband rate or at the dial-up rate?
    • Re:I'm Worried... by rovingeyes (Score:1) Wednesday February 22 2006, @05:29PM
    • heh by Winckle (Score:2) Wednesday February 22 2006, @08:53PM
  • One more reason not to use AOL (Score:3, Insightful)

    by dnamaners (770001) on Wednesday February 22 2006, @05:26PM (#14780241)
    (Last Journal: Saturday October 20, @10:03PM)
    As if the AOL customer service was reason enough to avoid it, now they add a whole new insult. Cell phone like plan gouging and hidden pricing with contractual commitments. Of course, on the upside, this will make people switch to a new provider via economic pressure. You have to love natural selection in progress.
  • Cool! (Score:5, Insightful)

    by rob_squared (821479) <rob.squared@gmail3.14159.com minus pi> on Wednesday February 22 2006, @05:26PM (#14780242)
    Wouldn't it be great if other companies did this?

    Golf courses could make the hole smaller to encourage more people to buy Tiger Woods video games.

    McDonalds could increase the amount of ice in drinks to make people buy bigger drinks.

    Motion Picture creators could degrade the quality of videos to make people move to a new format.

    Nike could make their shoes less comfortable and then sell replacement linings.

    Is this funny or insightful?
    It's probably both.
  • by panaceaa (205396) on Wednesday February 22 2006, @05:28PM (#14780272)
    (http://slashdot.org/~panaceaa | Last Journal: Friday July 14 2006, @09:19PM)
    Time to add AOL to the list of great [wikipedia.org] moments [segway.com] in pricing [caldera.com] failures [neo-geo.com].
  • Dennis Miller by MScrip (Score:1) Wednesday February 22 2006, @05:30PM
  • Its an outrage! by scenestar (Score:2) Wednesday February 22 2006, @05:30PM
  • I saw it coming by spazoidspam (Score:2) Wednesday February 22 2006, @05:31PM
  • "dial-up ... upgrade to broadband" by g0at (Score:2) Wednesday February 22 2006, @05:32PM
  • Their broadband deal is DSL by zymano (Score:2) Wednesday February 22 2006, @05:32PM
  • AOL is circling the bowl . . . by mmell (Score:2) Wednesday February 22 2006, @05:33PM
  • AOL seems to be too confident in their content value. If a user does not value the exclusive content, they've officially announced a way to encourage users to switch instead of moving to broadband. AOL just officially lost all customers who wanted an easy way to connect to the internet to read web sites and check their e-mail. AOL needs to realize that upgrades and spiked costs end up in permanent account loss.

    A good case for my point would be Dish Network. As they've started updating their systems for HD, they have given current users free updates for satellite dishes. Without this option, the users could easily re-evaluate their options and check out DirecTV. When Dish finally has a complete HD solution to all their customers, they could very well up the cost of their service and customers would have to accept the fact that they can't afford the initial cost of a new satellite service. Dish Network understands that you have to upgrade some options for free or you lose a permanent revenue source.

  • Do AOL dialup users read slashdot? by Proudrooster (Score:2) Wednesday February 22 2006, @05:36PM
  • Lifetime Internet Providers by SlashdotOgre (Score:2) Wednesday February 22 2006, @05:36PM
  • $ Criminal (Score:3, Insightful)

    by u16084 (832406) on Wednesday February 22 2006, @05:37PM (#14780344)
    Thats just criminal. AOL is no longer the premiere Content Provider. They will Join Qlink in the near future. http://en.wikipedia.org/wiki/QLink [wikipedia.org]
    Time Warner is now bundling AOL service with its High Speed service (to raise subscription rate for stock holders?) Everyone knows that you can get dial up as low as $9/month. Not to sound like a broken record, but BroadBand users tend to stear away from AOL - Cutting their own throat.
  • Confession time (Score:4, Funny)

    by Anonymous Coward on Wednesday February 22 2006, @05:37PM (#14780346)
    I have a confession to make; I once tried the AOL free trial. The free trial wasn't woth the cost!
  • Good by loraksus (Score:2) Wednesday February 22 2006, @05:38PM
    • Re:Good by SamerAdra (Score:1) Thursday February 23 2006, @10:14AM
  • DSL = DSlow by StikyPad (Score:1) Wednesday February 22 2006, @05:41PM
    • Re:DSL = DSlow by Average_Joe_Sixpack (Score:1) Wednesday February 22 2006, @05:51PM
      • Re:DSL = DSlow by drinkypoo (Score:2) Wednesday February 22 2006, @06:15PM
    • Re:DSL = DSlow by Gogogoch (Score:2) Wednesday February 22 2006, @06:11PM
      • Re:DSL = DSlow by StikyPad (Score:2) Wednesday February 22 2006, @06:38PM
        • 1 reply beneath your current threshold.
    • Re:DSL = DSlow by supermank17 (Score:1) Wednesday February 22 2006, @07:12PM
      • Re:DSL = DSlow by StikyPad (Score:2) Wednesday February 22 2006, @08:26PM
    • Re:DSL = DSlow by StikyPad (Score:2) Wednesday February 22 2006, @06:57PM
    • 2 replies beneath your current threshold.
  • From the Article by Orrin Bloquy (Score:1) Wednesday February 22 2006, @05:44PM
  • EOL by msbsod (Score:2) Wednesday February 22 2006, @05:50PM
  • What is this dial-up of which you speak? by WillAffleckUW (Score:1) Wednesday February 22 2006, @05:53PM
  • People can't let go of AOL (Score:5, Interesting)

    by hirschma (187820) on Wednesday February 22 2006, @05:55PM (#14780480)
    AOL is actually being pretty crafty about this.

    They know that there's a huge number of subscribers that are scared shitless about leaving the warm embrace of AOL, and they just won't leave. They figure that some folks will upgrade to AOL broadband, and AOL makes more money on this folks. Others will pay double, even triple for phone dial-up. Just to not lose that wonderful interface. They'll even suffer pain, case in point:

    I'm seeing this girl that's just scared to death of computers. AOL auto updated to the new version, and just totally screwed her computer in the process. This is not enough to get her to quit AOL. I fix her computer, requiring a complete OS reinstall, and set it to an older less toxic version... her stupid brother pops in an AOL 9.0 CD to upgrade it. It upgrades to 9.0, and then the cheap ass CD shatters from the high rotation rate of her 56x CD-ROM drive immediately post-install - totally destroys it. Then the software again does a number on her computer... and she still will not quit AOL.

    Hell, AOL is now learning what drug dealers have know for a while, and are going to make bucks on it.
  • Who needs AOL anyway? by dasunst3r (Score:2) Wednesday February 22 2006, @06:01PM
  • "Encourages" rural users to pay more, doesn't it? by Dzimas (Score:2) Wednesday February 22 2006, @06:06PM
  • Tax the stupid by hebie (Score:1) Wednesday February 22 2006, @06:08PM
  • Right hand, meet left hand. by JPriest (Score:1) Wednesday February 22 2006, @06:09PM
  • AOL Broadband Cheaper??? by Jynx97 (Score:1) Wednesday February 22 2006, @06:13PM
  • Only in America by stud9920 (Score:1) Wednesday February 22 2006, @06:13PM
  • question by roman_mir (Score:1) Wednesday February 22 2006, @06:23PM
    • Re:question by Neflyte_Zero (Score:1) Wednesday February 22 2006, @07:00PM
  • That's right folks (Score:3, Insightful)

    by cubicledrone (681598) on Wednesday February 22 2006, @06:31PM (#14780758)
    A company is going to deliberately overcharge their customers in an attempt to get them to stop using the product.

    Read that again.

    Perhaps people will begin to understand why:

    1. Retail stores deliberately mistreat their customers by having one cashier and 57 "loss prevention" employees.
    2. Disney fires 4000 people between nine-figure movie releases, then fires their entire animation division
    3. General Motors fires 30,000 people because "nobody is buying cars" We hear the news on the radio in a traffic jam that can be seen from orbit.
    4. Half of working-age adults are not employed in full-time permanent jobs.
    5. Half of the population is functionally illiterate.

    Go back and read about the company that is deliberately overpricing their product to make customers leave.

    Go ahead.
  • From the article summary: by Khyber (Score:1) Wednesday February 22 2006, @06:39PM
  • What's next? by cubicledrone (Score:2) Wednesday February 22 2006, @06:41PM
  • AOL and the lovely iron embrace... (Score:3, Insightful)

    by ursabear (818651) on Wednesday February 22 2006, @06:54PM (#14780891)
    (http://jimmybearpearson.com/ | Last Journal: Thursday November 09 2006, @10:10AM)
    My mother and father-in-law both use AOL. Neither of them can stand open Internet connectivity because it is different, transparent, and doesn't have the lovely ultra-over-crowded Welcome screen. This is not derision, it is a factual observation.

    When my father-in-law moved, he purchased DSL through the local phone company. He loves the speed. We tried to wean him off AOL, but have been unsuccessful. Quoth he, "Web mail is terrible, and Thunderbird is horrible!" [read:it doesn't have my familiar-of-7-years filing cabinet, and I have to actually start an application after he's "started" the internet.] "I don't 'see' the Internet!" [read: He feels warm and comfortable with the AOL main window as the portal, and using all these 'loose' applications gives him no warm fuzzies.]

    It isn't that he's not smart (he's got multiple Dr. degrees), it isn't that he doesn't understand... it is how he feels that matters. This is the nut of the AOL user base.

    None of my tech-enabled friends uses (or would consider) AOL - I think AOL has become a cultural ubiquity.
  • $26 may not be too high... (Score:5, Interesting)

    by loose_cannon_gamer (857933) on Wednesday February 22 2006, @07:06PM (#14780979)
    First, disclaimer. I have used AOL in the long distant past, and if it is still the same as it used to be, well, $-40 might be the right monthly rate (that is, they pay you enough to replace the computer they screw up).

    Second... my parents (mid 50's aged) used to be stuck with a high cost ISP through a deal they got at work. When their contract expired, they switched to your average nation $10 / month dialup ISP (Qwest has decided their neighborhood doesn't warrant DSL, although they live in a suburb and cable is readily available, but overpriced for their budget).

    This new ISP, unlike the old expensive one, is awful. Heaven help you if you want to send UDP traffic because it gets dropped, constantly (and on dialup, that is in fact the end of the world). Disconnections every 20 minutes, minimum. Plus, a real PITA interface with 'pop-up' blockers and 'virus scanners' that take down the web connection with frightening frequency while in fact neither blocking popups nor catching viruses and spyware. I know because, as most of you, I get the call to fix it when it is broken, and I *used* to be able to play games like Starcraft (pure UDP) with my little brother, back in the day...

    This isn't just a complaint post, though. There's a market hiding in there. Specifically, I would consider recommending an ISP who charged more money in exchange for services that were actually valuable. Like ISP to backbone latency guarantees, or never a dropped packet on their network (which requires quite a bit of expensive redundant hardware and a willingness to not sell all available bandwidth), or any of a host of other non-intrusive services. You want to scan for viruses? Scan the packets before they get to me. A popup blocker? I use a *real* webrowser, I don't need it. Your ridiculous dialer app that wraps internet explorer? Just give me a phone number and an 8 line instruction page for setting up a modem shortcut.

    For the right price, it *must* be possible to actually provide a true, clean, non-intrusive high quality connection at the advertised speed. Is that AOL? Probably not. But it if existed, it would be worth considering, even at $26 for dialup. The older I get, the more I am interested in exchanging my money for quality goods and services. I care about price, but I care more about what I'm getting than how much I'm getting it for. I am willing to pay more to avoid having MSN, AOL, Earthlink or any other such ISP manage my broadband connection, from experience with each of those.

    Is there such a thing as a 'luxury' ISP? Maybe there should be.

  • Wait Wait Wait... by Dj Suppai Saru (Score:1) Wednesday February 22 2006, @07:08PM
  • BS by alienw (Score:2) Wednesday February 22 2006, @07:09PM
  • Aol is... by EvilPickles (Score:1) Wednesday February 22 2006, @07:11PM
    • Re:Aol is... by GnarlyNome (Score:1) Wednesday February 22 2006, @08:35PM
  • Dialup v. DSL (Score:3, Interesting)

    by Kozar_The_Malignant (738483) on Wednesday February 22 2006, @07:30PM (#14781104)
    A couple of years ago, I spouted off here about why I was happy with dialup at home even though DSL was available. The reasons I gave were
    • T3 access at work for those .iso downloads
    • Don't do much online gaming
    • Better control of the kid's access
    • Cost

    Things have changed. Although I was happy with my local ISP, SBC DSL is now cheaper (I live in a rural area where a lot of those $10 deals aren't available). Only child still at home is now in college, and she needs better access. We both do some online gaming. I switched to DSL without any regret except the loss of a locally maintained Usenet spool.

    Now that I have a nice wireless network set up at home, I have found an added fringe benefit; backup network access through my neighbors who don't share my ideas about security.

  • Slashdot: News for Nerds? by chris vo (Score:1) Wednesday February 22 2006, @07:48PM
  • Hooked by email address inertia by purplelocust (Score:1) Wednesday February 22 2006, @07:51PM
  • AOL Dialup is like AT&T's old "standard" plan by parvin (Score:1) Wednesday February 22 2006, @08:04PM
  • Maybe... by kybred (Score:1) Wednesday February 22 2006, @08:16PM
  • hey I'm an AOL user by silentscope (Score:1) Wednesday February 22 2006, @08:18PM
  • How I Escaped From AOL by chromozone (Score:1) Wednesday February 22 2006, @08:48PM
  • by FunkSoulBrother (140893) on Wednesday February 22 2006, @08:55PM (#14781520)
    Can someone clue me in on where I can get that? I live in a big metro area (Denver) and I'm paying comcast $45 a month for cable internet, and thats with a deduction for owning my own cable modem and another for bundling with their Cable TV service.

    I'm not saying AOL is a good value or anything for dialup, but in my experience thats a pretty lowball estimate for "exact same per month as broadband".
  • Am I missing something? by jpellino (Score:2) Wednesday February 22 2006, @09:00PM
  • Earthlink is about to get bigger by Tablizer (Score:1) Wednesday February 22 2006, @10:11PM
  • by kiddailey (165202) on Wednesday February 22 2006, @10:12PM (#14781876)
    (http://www.mapraider.com/)
    I have an AOL account (as I've mentioned on Slashdot before) that I use almost solely for testing purposes of various content internet content that I create for clients.

    I probably use the account once every three or four months at the most, and I even then I access the AOL network through my own separate broadband ISP account. The only time in the past dozen years I've used it for non-testing for any period of time is when the three hurricanes came through central Florida and I was without my broadband connection for a few days.

    AOL isn't sparing anyone from the price increase. I *was* paying their obscure $4/mo+hourly plan which I considered fair. But, I received the following e-mail from them the other day:

    Dear Member,

    On your next billing date, we will be increasing the monthly fee for your AOL® Limited Plan to $6.95 for 3 hours of online usage. Additional hours will be billed at $2.50 per hour. This price change, our first in over four years, helps us continue to provide you with reliable Internet service including security features, exclusive content, member service and support. Over the past two years, we've spent more than $2 billion to provide the convenience, safety features and reliability you've come to expect from AOL. You continue to get great benefits under your AOL Limited Plan, including:

    The most comprehensive set of automatic online safety tools - all located in one place - to help protect you from identity theft, spyware, and viruses.
    24/7 live customer support by phone, email or Instant Messaging that allows us to be there whenever you need us.
    Access anywhere, anytime to your AOL® Mail, AOL content and your AOL address book from any Internet-connected computer. Even when you're away from home you can get there through www.aol.com, over a dial-up or high-speed connection.
    Help protecting your important files with unlimited storage for digital photos and unlimited email storage.
    Go to AOL Keyword: My Account, or http://bill.aol.com/ [aol.com] on the web to find out your exact billing date and more information about your plan.

    We look forward to continuing to provide you with the best online experience possible--today and in the future. Thanks again for being an AOL member.

    Sincerely,
    The AOL Member Service Team

    As you can read in the letter, they're basically justifying raising my monthly fee for items of their service that I never or rarely use or benefit from: reliable Internet service, security features, exclusive content, member service and support.

    And now they'll be getting $83/year (nearly all of which is pure profit) from me -- a developer trying to support users of their crappy service. I realize it's not a lot, but that doesn't make it feel like less of a ripoff.

    Way to go AOL. You're making it really easy to just give up on you completely.
  • Why pay at all? by m85476585 (Score:1) Wednesday February 22 2006, @10:20PM
  • Messages from AOL by Lord_Dweomer (Score:2) Wednesday February 22 2006, @11:37PM
  • huh? by cyranthus (Score:1) Wednesday February 22 2006, @11:54PM
  • $18 price is for suckers too by Fluffy the attack ki (Score:1) Thursday February 23 2006, @01:16AM
  • AOL by Mike_ya (Score:1) Thursday February 23 2006, @02:06AM
  • AOL oh dear... by Pawsaldo (Score:1) Thursday February 23 2006, @03:10AM
  • Bad news for outlanders. by CCFreak2K (Score:1) Thursday February 23 2006, @04:51AM
  • Great strategy! by suv4x4 (Score:1) Thursday February 23 2006, @07:10AM
  • The trifecta is complete! by smooth wombat (Score:2) Thursday February 23 2006, @08:11AM
  • what bs by technotot (Score:1) Thursday February 23 2006, @08:16AM
  • Isn't AOL part of my computer? by Cro Magnon (Score:2) Thursday February 23 2006, @09:00AM
  • dialup profit margins shrinking? by chocolateeater (Score:1) Thursday February 23 2006, @11:52AM
  • You've got bail! by billcopc (Score:1) Thursday February 23 2006, @12:10PM
  • AOL????? by Austin Milbarge (Score:1) Thursday February 23 2006, @12:56PM
  • Re:Uhh... (Score:5, Insightful)

    by XenoRyet (824514) on Wednesday February 22 2006, @05:52PM (#14780455)
    AOL's customers aren't capable of comprehending such a thing, that is why they are still AOL users.

    All kidding aside, AOL completly relies on the fact that their customer doesn't know a thing about how computers or the internet actualy work. Just look at their commercials: (talking about their spyblocker or some such) "Because with high speed internet, the intruders come at you faster!" I don't even know where to begin with that statement. But the AOL users just nod knowingly and install more bloatware.

    [ Parent ]
    • Re:Uhh... by SeaFox (Score:2) Wednesday February 22 2006, @09:47PM
    • Re:Uhh... by Danimoth (Score:1) Thursday February 23 2006, @07:50AM
    • Re:Uhh... by kopo (Score:1) Thursday February 23 2006, @08:45AM
    • Re:Uhh... by krod77 (Score:1) Thursday February 23 2006, @10:38AM
      • Re:Uhh... by xhrit (Score:1) Thursday February 23 2006, @02:19PM
    • 1 reply beneath your current threshold.
  • Re:Uhh... by Chaos1 (Score:1) Wednesday February 22 2006, @06:46PM
  • Re:Uhh... by uncoveror (Score:2) Wednesday February 22 2006, @07:40PM
    • Re:Uhh... by Anonymous Coward (Score:1) Wednesday February 22 2006, @09:26PM
  • Re:Oh, great, even worse life. by Alderin1 (Score:1) Wednesday February 22 2006, @07:49PM
  • 13 replies beneath your current threshold.