America On-Line (AOL) Message Board

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Technology Stocks : America On-Line (AOL)

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To: Jorge who wrote (4401)	2/5/1999 9:21:00 AM
From: Tumbleweed	Read Replies (1) of 41369

Re: Has AOL Met It's Waterloo? ALthough the free ISPs in the UK are really taking off that model wont replicate to the US unless basic telephone charging changes. In the UK, local calls are not free, and the ISP gets their money by taking a cut of these calls. So, although you see the headline 'free' you are still paying call charges, which works out at somewhere in the region of 1.2c or thereabouts per minute. The free element is the subscription. If you subscribed to AOL in the UK you'd pay the same 1.2C/min plus a monthly subscription of about $25. Presumably if the other ISPs can make a profit on this model in the UK, then I suppose AOL could also. I dont see how that could work in the US, I assume you pay a monthly fee but no call charges? Joe

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