To: Jan Crawley who wrote (46005 ) 3/17/1999 8:14:00 AM From: Glenn D. Rudolph Respond to of 164684
AOL<AOL.N>aims to more than triple Europe subscribers HANOVER, March 17 (Reuters) - AOL Europe, owned by U.S. online services giant America Online Inc, said on Wednesday it plans to more than triple its subscribers by 2002. The European subsidiary of the world's leading Internet services provider warned however that despite liberalisation high phone charges were a serious dampener on Internet use. "The company's ultimate goal is to reach 10 million households in 2002," AOL Europe's chief executive officer Andreas Schmidt told a press conference held at the annual CeBIT technology trade fair. Currently, 2.6 million households have signed up to AOL Europe. AOL's market share in Europe was currently about 25 percent. This should rise to over 30 percent by 2002. Schmidt said he wanted AOL to lead Europe's emergence as an Internet power but that this was being hampered by excessive telephone costs. "European telecommunications costs are approximately five times higher than in the United States. By 2001, the U.S. will have more than three times the Internet penetration rate of Europe, 40 percent versus 13 percent, despite Europe's largest overall population and economy," Schmidt said. Schmidt urged politicians in Europe to lobby for the Internet business, saying the development of a competitive economy depended on this. He said AOL would be mail-shotting members of Europe's national parliaments and the European parliament to seek support. "We will push for policies and a business environment that will allow Europe to realise its potential as a competitive, modern 'Net-centred' economy, Schmidt said. Answering questions, Schmidt said the investment required by AOL to meet its subscriber target would be massive, but he declined to give figures. Schmidt said AOL Europe aimed to win a significant share of the projected $2.77 billion revenue from Internet advertising expected by 2003. AOL Europe was formed in 1995 as a joint venture with Bertelsmann Ag <BTGGga.F>, Europe's largest media company.