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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: jhg_in_kc who wrote (30075)	8/27/1999 1:03:00 AM
From: Dr. David Gleitman	Respond to of 41369

To all from Street.com re: Afterhours trading: America Online (AOL:NYSE), down 7/16 to 100 on 1,850 shares. FWIW, David

To: jhg_in_kc who wrote (30075)	8/27/1999 1:46:00 AM
From: Dr. David Gleitman	Respond to of 41369

FOCUS-AOL flat-rate leads German Internet stampede Reuters Story - August 26, 1999 12:21 (adds Sony online announcement) By Neal Boudette, European Telecommunications Correspondent BERLIN, Aug 26 (Reuters) - AOL Europe shook the European Internet scene again on Thursday, announcing it would offer unlimited online access in Germany for a flat rate of 9.90 marks per month. The price is aimed to jump-start growth in Germany and take market share from rival Deutsche Telekom AG , which has refused to consider flat rates for its T-Online unit. "We are willing to be aggressive," AOL Europe Chief Executive Andreas Schmidt said at a news conference at the IFA media and telecommunications trade show. "I see this as the first step to bring the Internet revolution to the masses," he said. "I think we can take over the leadership in Germany." AOL Europe is not alone in targeting Germany, either. Also at the IFA show, a start-up backed by Sony Corp said it was about to launch a subscription-free online service of its own, while Telekom rival Mannesmann Arcor AG cut the prices of its Internet service. AOL Europe's flat rate, which does not include telephone charges, is well below expectations. German media had reported AOL Europe would announce a flat rate of 19.95 marks per month. It also comes two days after the company, a venture of America Online Inc and Bertelsmann AG , started Netscape Online, a subscription-free service in Britain to compete with upstart access provider Freeserve Plc . The Internet boom has gained momentum in Europe this year, but AOL Europe had failed to take advantage of it. Last year it lost its lead in Britain after Freeserve's subscription-free service quickly drew more than one million users. In Germany, T-Online has 3.3 million users, three times as many as AOL Europe. But with Netscape Online and the new German flat rate, AOL Europe is ready to strike back, Schmidt said. "Our strategy is to really open the market," he said. "High costs have held back the Internet in Europe for too long." The new German rate takes effect on October 1. In addition to the monthly price, users will pay six pfennigs each time they dial in, plus 3.9 pfennigs per minute in phone charges. Sony-backed FriendFactory on Saturday will start its access service that costs three to eight pfennigs per minute with no monthly charge. Arcor, a unit of Mannesmann AG , cut its rate to 3.9 from six pfennigs per minute. That 24-hour price covers both the access and telephone costs. T-Online charges six pfennigs per minute for Internet access and telephone usage combined, a rate structure that makes access expensive for heavy Internet users. Caught off-guard by the AOL Europe announcement, Telekom board member Detlev Buchal promised a response. "We will go forward with a competitive offer," he said at IFA, and noted that Telekom may revive an offer for 20 hours of online time for 49 marks per month. That would beat the AOL Europe flat rate limited use, but thirty or more hours online would be substantially less with AOL Europe. AOL Europe is counting on its flat rate to spark a sharp rise in subscriber numbers that will in turn drive online advertising and e-commerce revenue, Schmidt said. "We are not buying market share. We are relying on multiple revenue streams from subscriptions, advertising and e-commerce," he said. In July and August, AOL Europe booked $60 million in advertising and e-commerce sales -- twice as much as it had in the 12 months to June 30. Netscape Online and the German flat rate are part of a massive campaign by AOL Europe to try to duplicate the success of AOL in the United States. Over the next several months, it may bring Netscape Online to other European countries, and make its services available via mobile phones and television