AOL's Cheap Computer Hides Expensive Service?

from the good-work dept

How desperate is AOL getting in trying to slow down the rapid decline in their subscriber lists? Knowing that Wall Street will freak if they dare to lower their dialup prices to anything even remotely more competitive, they're now trying to sell a cheap computer to hide the high dialup costs. The way it works is you get a very basic computer for about $300, but you need to agree to a year's worth of AOL's $24/month dialup service. The difference between that and a cut-rate dialup pretty much wipes away any "savings" from this cheap computer. However, don't tell that to AOL. They're insisting that the most expensive dialup service around, that's bleeding customers at faster and faster rates isn't expensive at all. They don't have any reason for it, other than they say so: "I categorically deny the service is expensive." Well, that's convincing. I hate to break it to AOL, but it's not people inside AOL who determine whether or not your service is expensive. It's your competitors who consistently price well below what you offer, and your customers who see greener (cheaper, faster) pastures elsewhere.
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  1. identicon
    Anonymous Coward, 12 Aug 2004 @ 11:39am

    No Subject Given

    Harsh. Hey, AOL is like the rest of the phone companies that are losing subscribers. Face it, dial up at any price is dying. They are just trying to stem the bleeding until the can either come up with a solution to replace this line of revenue or figure some way to sale off this portion of the company ... Hard to believe these guys bought Time Warner ... harder to believe that someone thought that would work.

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