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To: craig crawford who wrote (7215)2/9/1998 1:42:00 PM
From: Keith J  Read Replies (1) | Respond to of 27307
 
No, I realize that $2/month probably won't drive that many people away that already have and love AOL. However, it may drive some of the people who aren't as satisfied away. And no one really knows what AOL is going to do to Compuserve eventually. The press release didn't indicate effect on AOL's longer-term plans (whether existing plan holders would see a hike as well, which I don't think they would legally be able to do anyway; or in terms of holding the longer-term plan prices steady or raising them as well). I'll have to check on AOL.

But I've seen ISPs offer 3 year deals at about $10/month. Even if they raise prices too, the point is that internet access would become more expensive. Will current non-internet users opt into a system that is getting more expensive? Or at least will this slow growth down some. Remember, current users are probably in better financial shape than non-users. Or if other ISPs don't raise rates, then they have a larger competitive difference (and could even advertise this) which could stunt AOL's growth.

KJ