Software (7992)

AOL considering free service plan for high-speed internet users

It's all part of a mast plan to switch to an ad-based business model

6 July 2006 16:11 GMT / By Amber Maitland

AOL is considering a plan to give its services free to high-speed internet users as part of a move to become an ad-based company rather than a fee-based one, according to the Wall Street Journal.

The company initially may make a $2 billion loss in subscription fees as current broadband subscribers cancel their subscriptions for the free service, but this would be offset by job cuts.

Dial-up customers would still have to pay their monthly subscription fee under the new plan.

The Journal also reports that AOL lost about 850,000 subscribers in the first quarter of this year to high-speed internet providers.

Full tags

Software, Networking, Broadband, AOL