Monday, April 11, 2005


AOL unleashed their VOIP service this month. Only 10% of their customer base uses broadband. This will be a revenue boost, but how much of one? And this is another competitor in an already crowded market. AOL will be using TW's VOIP service - and will be pushing its customers to TW Cable modem service (where available). From NewTelephony mag, "Another advantage is that AOL can link the VoIP service to its regular online service, packaging the two for an introductory rate of $29.99 per month for the first six months. That offer includes unlimited local and long-distance calling within the United States and Canada, plus unlimited access to the AOL service over a broadband connection. After six months, the price of the package will be $39.99. Having customers add phone service to their ISP services undoubtedly will help retain customers who might be tempted to migrate to less costly ISPs or to give up AOL’s extra services altogether in favor of simple Web access. AOL typically appeals to new users of the Web who often abandon the service when they become more familiar with the Internet." Andy Abramson says, "playing up the ease of use and the fact that the AOL approach is geared and always has been about that.....One of the things AOL has to do is get away from the "our customers are dummies" and begin to appeal to the sophisticated, um experienced power user. Why? AOL has a ton of great content, a large community." Tom Keating has a long descrip on the service. The highlight is E-911.

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