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Technology Stocks : America On-Line: will it survive ...?

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To: jack rand who wrote (840)12/19/1996 12:57:00 PM
From: Art Stone   of 13594
 
AOL isn't going to get any significant business from netcom's "backing off" the $19.95 unlimited consumer accounts. The reason is the same one that AOL is going to lose most of its 200k GNN accounts.

AOL does not support standard Internet (TCP/IP) protocols for email or usenet newsgroups. All the software that people have grown comfortable using - Agent, Eudora, Pegasus, MS Mail and News, Netscape Mail and News, WinVN - NONE of it works on AOL - because AOL has no POP3/SMTP or NNTP servers.

Unfortunately for them, at least a few of the gleeful people returning to AOL after using an ISP forgot to check that out prior to prepaying for a year.

A later story at C/net indicates that netcom is considering staying in the consumer market, but at a higher price ($30/month). Right about now would be an ideal time for ISPs to raise prices and milk the folks who will be crawling back in a week or two, when it becomes obvious AOL's network overload won't clear up for at least 6 months (assuming AOL can even find the cash to fund the fixes)
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