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AOL Raises Dial-Up Prices To Encourage Broadband Upgrade

Curiously enough, AOL has raised the price of its dial-up service to equal that of its new broadband offerings--ostensibly to encourage users to upgrade their connections. Beginning March 9, AOL subscribers will pay $25.90 per month for either broadband or dial-up service, with a $2 a month discount for dial-up subscribers who commit to a year. AOL believes broadband will help boost usage of its new free ad-supported services like news and videoincreased usage, which, of course, means more ad dollars. They're probably right: according to a Pew Internet and American Life Project study, those with broadband are 52 percent more likely than dial-up subscribers to use the Internet on a given day. AOL is partnering with BellSouth Corp., Verizon Communications, and AT&T Inc., as well as Time Warner Cable and Charter Communications. The Time Warner, Charter and Verizon packages are limited-speed offerings.

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