AOL raises rates 9%

  05/24/2001 4:48:51 AM MDT Albuquerque, Nm
  By Dustin D. Brand; Owner AMO

Starting this July, and citing the development of AOL v7, AOL is raising rates 9%.
  Outlined Tuesday, AOL said it will charge subscribers $23.90 for its monthly unlimited-use plan beginning in July of 2001, a 9 percent increase from the current rate of $21.95. AOL has not raised the price of its unlimited-access service since April 1998.

  Others like Earthlink havn't raised their rates since 1995.

  Company executives have said in the past that AOL Time Warner, the parent company of America Online, is resistant to a recession because of the company's multiple revenue streams, its ability to cross-promote its products, and its steady subscription income.

  Broadband internet access has proven that users are willing to pay as high as $80 a month for access, most Cable modem users currently pay $40 with cable tv service.

  So far, Microsoft's MSN Internet Access, which has 5 million subscribers who pay $21.95 a month for dial-up service, said it does not plan to follow AOL's lead.

  "It's not clear as to why AOL expects its customers to pay a premium for a service that does not offer the same level of features and functionality that can be found standard on MSN," said a Microsoft representative.

  AOL has however cited their AOL v7.0 software as one reason for the price increase.

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