Thought you readers and investors here might enjoy the latest update from the keyboard of Mr. Case.
One rhetorical question for you: We have been speaking of self serving agendas (as in Robertson Stephens and Lehman Bros etc..). Do you folks really believe the print and web-centric media is presenting an accurate picture of what the logon difficulties are at AOL?
I am a daily user, and there has definitely been a deterioration since Dec 1, but only in the prime time of 7-12 pm and sometimes during the day on weekends. Weekday daytime access is never a problem. And access in prime time has been improving in January as AOL added capacity in my area.
So, on with the words from our faithful leader, Steve:
January 30, 1997
Dear Members,
Last Fall, you told us you wanted an unlimited use plan, and we delivered. Naturally, we anticipated more usage, and prepared for it, but we seriously underestimated the surge in demand that actually occurred.
We know that you are having problems getting online and we are working day and night to improve the situation. Two weeks ago, I told you about our $350 million system expansion program and other steps we were taking to address the unprecedented surge in demand for AOL. We are now taking additional steps, with the following four goals in mind:
>> To expand system capacity as quickly as possible. This is our number one priority. You want the access problem fixed, and so do we. Our $350 million system investment program (more than we spent in our first decade of existence) will add 150,000 more modems to AOLnet and give us the capability to handle 16 million member sessions a day -- five times more than we handled last year. And next week we will break ground on our third data center, a 180,000 square foot facility that will double the amount of data center space for the AOL host computer systems.
>> To serve our existing members before adding new members. We've cut back our recruitment of new members until we are sure that you are being served properly, holding membership at the current mark of approximately 8 million.
>> To work extremely hard to maintain the loyalty of members who've had problems with busy signals, and to continue to make it as easy as possible to use our service. We are strengthening Member Services with the addition of 600 customer support representatives, which will bring our total to 4,500 by June. We've added an 800 number dedicated to providing members with alternative access numbers. We're also offering credits or refunds on request to members who don't feel they have gotten sufficient value from AOL due to our capacity problems.
>> To communicate frequently about the steps we are taking to improve AOL. We will continue to educate our members and the general public about the progress we are making and the improvements in the system through the media, through our customer service representatives and on the system itself.
We have been a leader in Internet online services for more than a decade. The events of the past few weeks have vividly reminded us of the responsibilities we have, as the service that 8 million members rely on each day. We take these responsibilities seriously, and I can assure you we will do everything in our power to meet them.
Again, on behalf of all of us at America Online, I thank you for your patience and support.
Sincerely,
Steve Case
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