Microsoft Outlines Plans for Cheap Internet Access, WSJ Says
Redmond, Washington, Aug. 5 (Bloomberg) -- Microsoft Corp. is laying out plans for low-priced, possibly free Internet access in a challenge to America Online Inc.'s dial-up Internet-access business, the Wall Street Journal said. The move by Microsoft and other companies to offer cheap Internet access threatens AOL, which generates about two-thirds of its revenue from the $21.95-a- month fee it receives from more than 17 million customers. Brad Chase, vice president of Microsoft's new consumer and commerce group, said the company intends to be aggressive with access, while AOL President and Chief Operating Officer Bob Pittman said AOL is prepared for any Microsoft counterattack, the paper reported.
Microsoft, the world's No. 1 software maker, and AOL, the largest online service, are also battling over instant messaging, or real-time e-mail, with Microsoft wanting free access to AOL instant messaging users and AOL demanding payment for such access.
(WSJ 8/5 B6 wsj.com)
Aug/05/1999 7:30
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