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AOL Dumping Some Broadband

unsupported writes "Just days after news that AOL will be breaking up into 4 business units, AOL is telling existing broadband customers in 9 Southern states to find a new carrier. This news comes after AOL stopped selling broadband services earlier this year. AOL plans a similar phase out of existing broadband customers for the rest of the country over the next year."

54 of 275 comments (clear)

  1. No surprise... by inkdesign · · Score: 5, Interesting

    AOL has been losing customers like crazy - in this case, they just have an alternate reason to leave!

    1. Re:No surprise... by calibanDNS · · Score: 4, Interesting

      The real surprise here is that according to the article AOL is telling customers to switch to BellSouth's FastAccess DSL service. I would really expect them to promote Time Warner's RoadRunner service since it's still a part of AOL/Time Warner. Perhaps such bad decisions like this are a part of the reason that AOL is losing customers?

    2. Re:No surprise... by Anonymous Coward · · Score: 2, Insightful
      AOL has been losing customers like crazy - in this case,
      they just have an alternate reason to leave!

      They've been losing customers because their pricing
      is uncompetitive when you take into account package
      discounts through other providers when you sign up for
      more than just broadband.

      The hope is that this will get them back onto the path.
      Customers get breaks for carriers for signing up, like
      BellSouth for example.

      Just wait until the cable companies & RBOCs figure out how
      to roll out content rich services without AOL's overhead.. and
      give AOL a run for the money. AOL is at risk of losing large
      chunks of its subscriber base altogether.

      Disclaimer: This is not investment advice, although it
      might very well turn out to be ;)...


      --
      Jesusland. Featuring The Spanish Inquisition. Film at 8.

    3. Re:No surprise... by calibanDNS · · Score: 2, Interesting

      I can't speak for all areas, but I live in Winston-Salem, NC and I have RoadRunner (and it's available across most of the state I believe). Also, my parents live in Greenville, SC and have RoadRunner as well, as do many of my friends across SC.

      Can anyone else vouch for the other states listed?

    4. Re:No surprise... by pilgrim23 · · Score: 4, Funny


      Recently I got a little note in my landline phone bill: "Hi! This is AOL. Per your request, we will be billing you for our monthly service via the telephone company. Thanks for choosing AOL"
      I have DSL service from [major phone provider] and an IP from [local mom and pop ISP]
      I NEVER REQUESTED NO STINKIN AOL!!!!
      So I called Beautiful downtown Bangalore via the AOL 800 number and after a pleasant wait of forever on really stupid hold music and advertisements, I got some guy named "Bill" who spoke far better English then I. He must have; after all a World class company had hired him to speak to me...I explained the issue which he..did not understand.
      Again it must be me; a fine company like AOHell would never hire people who could not understand their potential customers. "Bill" passed me to "Sheila" who also was very difficult to understand. Feeling even more the Dumb American I explained the problem again and she Asked why I disliked the service and wished to cancel. I yet again explained I had never signed up for the service IN THE FIRST PLACE!
      She then said she would pass me to someone who would help me. Funny, I thought all the other people I had been speaking to were there to help me, silly presumption on my part... I at this point lost my temper and described the circumstance again. precisely, with name, number, dates and other data, and ended with: "If this is not dealt with correctly, litigious redress is always a possibility".
      Two months later: A bill for $56.80 for 2 months of AOL service. At this point postal workers came to mind... I called AOL, said "Lets cut to the chase; give me your supervisor.." After yelling a bit I got a person who spoke American. The bottom line of this call was a promise to remove the charge and the AOL billing. I will wait a week and try calling again or. In the mean time I have already sent a pleasant note to my State Attorneys General Office complementing AOL on their shrewd marketing techniques.

      --
      - Minutus cantorum, minutus balorum, minutus carborata descendum pantorum.
    5. Re:No surprise... by mordors9 · · Score: 3, Interesting

      From what I remember though, AOL and the Time Warner people don't get along very well. There was a perception by Time Warner that they ended up buying a pig in a poke when they bought AOL.

    6. Re:No surprise... by div_2n · · Score: 2, Interesting

      As another poster mentioned, RoadRunner is not available in all areas. Adelphia has a big presence in some areas as well as Insight. Bellsouth is near Ubiquitous with the exceptions of Alltel and a few smaller co-ops.

      As to the why--those of you that ever tried to deal with Bellsouth alread know. They are an enormous PITA to deal with, have the nasty habit of quoting you one price over the phone and totally different (read higher) when you get the quote on paper/e-mail and are generally extremely hostile to competition. They price their competitors such that they would have to make razor thin margins on service to compete.

      That, I suspect, is the reason why. Bellsouth has effectively priced them out of the market. Since Bellsouth is so big, I wouldn't be surprised if they are the sole reason for exiting the market. Of course, they may have experienced the same thing from other ILECs.

  2. Dear Broadband by Anonymous Coward · · Score: 5, Funny

    We've had some really great times, which is why it hurts me to say this, but I'm dumping you. Don't cry! It's not you, it's me, really. I want to move in some new directions, and I don't think you can go with me. You'll find someone new, I'm sure of it. Everyone I know says "Broadband is great." and they mean it. I know it hurts right now, but it will fade in time.

    Love,
    AOL

    1. Re:Dear Broadband by caluml · · Score: 4, Funny

      That is like a ready made template... :)

  3. New Slogan by xCepheus · · Score: 5, Funny

    Welcome! You've got [NO CARRIER]

    1. Re:New Slogan by Jucius+Maximus · · Score: 2, Insightful
      "Welcome! You've got [NO CARRIER]"

      Um, AOL is dumping broadband, not dialup.

    2. Re:New Slogan by Zorilla · · Score: 2, Funny

      Welcome! You've got [NO CARRIER]

      So, how's this different from 1997 again?

      --

      It would be cool if it didn't suck.
    3. Re:New Slogan by tepples · · Score: 2, Insightful

      Do you claim that cable and DSL don't also have "carrier" and "modulator" waves?

    4. Re:New Slogan by Zorilla · · Score: 2, Insightful

      You consider that a fix? Must have been reading too many MS Knowledge Base articles.

      Problem: There's a bug in foo.
      Solution: Stop using foo.

      --

      It would be cool if it didn't suck.
  4. All that wasted Ad money... by mconeone · · Score: 2, Funny

    I miss the commercials of people/things going really fast. Too bad they were all a waste.

  5. Here's why by Anonymous Coward · · Score: 5, Funny

    The affected states are Florida, Kentucky, Georgia, Louisiana, Alabama, Mississippi, Tennessee, North Carolina and South Carolina.

    They probably just got tired of getting paid in squirrel pelts.

    1. Re:Here's why by bujoojoo · · Score: 3, Funny

      No, my boy. We pay in carpet-bagger skins...

      --
      This space for rent
    2. Re:Here's why by greenegg77 · · Score: 2, Funny

      They're getting revenge on the on the states that voted for Bush. "You voted for Bush? Well then, you can't use our crappy service anymore! Pfffft!"

      --
      --- This .sig for sale - $500 OBO.
  6. Retrograde? by attam · · Score: 2, Insightful

    So AOL got into broadband b/c their dialup business was getting spanked by it... and now they are dropping the broadband and riding the 56k modem wave out? WTF???

    1. Re:Retrograde? by techno-vampire · · Score: 4, Funny

      Years ago I started picturing AOL as walking along holding a gun in each hand. Each gun is pointed toward one of its feet and at random intervals, they pull a trigger. I think they just pulled both at the same time.

      --
      Good, inexpensive web hosting
  7. Coasters by Moby+Cock · · Score: 3, Interesting

    Do you think that the people getting dumped will also receive CDs offering 3 months free dial-up with AOL? I'd be pissed.

    1. Re:Coasters by dr_dank · · Score: 2, Funny

      At the very least, AOL will let them come over to pick up their stuff.

      --
      Where does the school board find them and why do they keep sending them to ME?
    2. Re:Coasters by swordboy · · Score: 4, Funny

      I actually called them up and requested that I be removed from their mailing list. Their response? They told me that was impossible since they mail them at random to the entire population.

      So now, when I see a stack of AOL CDs at the grocery store or a restaurant, I pick them up and put them into the garbage.

      --

      Life is the leading cause of death in America.
    3. Re:Coasters by PhilipPeake · · Score: 2, Insightful

      When some of the old Netscape crowd were laid off by AOL a few years ago AOL HR really could not understand why they were so pissed-off to find an AOL CD with three month's free service in the package provided to them when they were let go.

      Intelligence never was a common commodity at AOL.

    4. Re:Coasters by Squareball · · Score: 4, Funny

      "impossible since they mail them at random to the entire population"

      Well that's an easy fix. Remove yourself from the population.. duh ;)

  8. Brilliant.... by tekiegreg · · Score: 4, Funny

    1) Alienate customers from an indeustry segment that's actually gaining customers (as opposed to dialup service that's losing customers)

    2) ???

    3) Profit!!! All well and good I suppose, less Newbs out there cluttering crap up.

    --
    ...in bed
  9. AOL: How to win friends and influence people by Craig+Maloney · · Score: 2, Insightful

    It's amazing that people would put up with AOL, but time and time again people have shown that no matter how badly they're treated, they'll hang on to bad relationships (including bad business relationships) without thinking of how bad it could really get.

  10. Has to be said by TheRealMindChild · · Score: 5, Insightful

    We all generally have the opinion that AOL is "Evil", but if I had to list ONE GOOD THING about them, it would be that even if I am in Antarctica, I could get a dialup provider via AOL. I think that is the reason for a LOT of their original customer base. When people move to broadband, they probably find that AOL isnt the "internet", and simply leave. It lost its appeal, so this is just AOL going back to doing the one thing they are good for.

    --

    "When life gives you lemons, don't make lemonade. Make life take the lemons back!" -- Cave Johnson
    1. Re:Has to be said by dead+sun · · Score: 4, Insightful
      I think they just know their customers really well. They're the people who do believe that AOL is the "internet". They're the people who need things spelled out for them in really simple terms. They are not the tech-elite that would really make use of broadband.

      AOL is famous for their little "You've got mail" noise. They're well known for AIM, which has an impressive userbase for something that seems to be lagging behind other protocols.

      They have (or had, I've never subscribed personally) AOL keywords so people don't have to search the web to get information, you just dumped in a sanctioned term and up popped info. There weren't these .com, .net, .org, .biz, .info, and everything else for the tech illiterate to become accustomed to.

      So what did AOL always offer? Mail, messenger, some info, and eventually a stepping stone to a larger world. I don't think the average AOL user has much need for broadband. I think once you're ready for broadband you're probably ready to let go of AOL's hand.

      AOL is good for beginners and as you said, widely available access. As that larger world they offer a stepping stone to becomes more media rich they'll lose more customers because it's unaccessable on 56k. But at that point, AOL offering broadband for their core services is overkill too. There's no value to broadband through AOL unless you're using that outside world. But if you're heavily using the outside world, there's little value to AOL. On the other hand, those who don't care about the web at large may be just fine with AOL dialup.

      --
      If not now, when?
  11. AOL's Choice of Broadband Provider by Anonymous Coward · · Score: 3, Insightful

    Interesting how they chose to redirect all of their broadband customers to Bellsouth instead of their parent company's broadband provider, Time Warner Cable

    1. Re:AOL's Choice of Broadband Provider by RazzleFrog · · Score: 2, Informative

      Sorry but you are wrong. AOL and Time Warner exchanged stock 55%/45%, respectively, and formed a new company that is now called Time Warner. AOL is a subdivision of this company as is Warner Bros., HBO, New Line Cinema, etc.

  12. Doesnt make sense by conrius · · Score: 5, Insightful

    With everybody preferring broadband over dial up , it seems suicidal to give up all capability in broadband, split and concentrate more on dial up !! Shouldnt AOL being doing things the other way round and try to build up presence in broadband market ?

    1. Re:Doesnt make sense by thirteenVA · · Score: 2, Informative


      Last time I checked broadband was not available everywhere...

      In fact the last figures I saw for 2003 said that only about 36% of home users had broadband.

      Try this link for more information(note: this is a pdf)

    2. Re:Doesnt make sense by raju1kabir · · Score: 5, Funny
      Last time I checked broadband was not available everywhere...

      In fact the last figures I saw for 2003 said that only about 36% of home users had broadband.

      Last time I checked brown carpeting was not available everywhere...

      In fact the last figures I saw for 2003 said that only about 36% of homes and custom van conversions had brown carpeting.

      (Not to take issue with your conclusion, but your supporting statement is irrelevant)

      --
      "Patriotism is your conviction that this country is superior to all other countries because you were born in it." -- GBS
  13. AOL will stiff offer service OVER broadband by Anonymous Coward · · Score: 3, Informative

    For like $10 a month, but now they just won't be selling their own broadband. I think they're trying position themselves as a content provider for broadband, rather than a broadband ISP. Amazingly, there are people that will want it.

    1. Re:AOL will stiff offer service OVER broadband by stratjakt · · Score: 5, Funny

      It's not that amazing.

      There are plenty of people who would rather type in an AOL keyword like "Oprah" to get the details on todays show, than to try and remember URLs or fuck with Google for 4 hours to find what they're looking for.

      People being willing to pay for AOL is much less amazing to me than people being willing to pay to see slashdot articles 10 minutes early.

      --
      I don't need no instructions to know how to rock!!!!
  14. What about Time Warner by 1000101 · · Score: 4, Interesting

    This doesn't make much sense to me. Doesn't the Time Warner half want to push hi-bandwidth content through to its AOL subscribers? It's much more difficult to do this via 56k. I really don't know much about the merger other than it's not doing so well. But it seems like the two sides aren't really talking.

  15. Glad I sold my AOL stock! by museumpeace · · Score: 4, Interesting

    The reason [aside from the fact that they suck and really amount to traveling the information super highway with training wheels dragging] we dropped our AOL subscription was their incessant advertising to get us to upgrade to aol broadband which they have never delivered in my area. Broadband did become available [some neighborhoods get DSL, we have comcast cable internet pretty much throughout my metro area]. Bottom line: Broadband is killing AOL in my part of New England. If Aol is dumping broadband, its going to hurt them badly in the long run. Even if BB service is costly for them to set up...everybody else [e.g. comcast] raises their rates and gets away with it...breaking even later is better than having no customers.

    --
    SLASHDOT: news for people who can't concentrate on work or have no life at all and got tired of yelling back at the TV.
  16. What about the rest of AOL? by Raynach · · Score: 5, Funny
    Now if AOL could just die off completely, the world would be a better place...

    And I wouldn't have to use such a godforsaken slow connection when I visited my parents...

    --
    - A
  17. Amazing.. by Tuxedo+Jack · · Score: 4, Funny

    Normally the customers try like hell to get unsubscribed from AOL - apparently, the tables have turned!

    --

    Striking fear in the authors of godawful fanfiction, I am here, appearing in darkness, Tuxedo Jack!
    1. Re:Amazing.. by CausticPuppy · · Score: 2, Funny

      Normally the customers try like hell to get unsubscribed from AOL - apparently, the tables have turned!

      If only the customers could make it as difficult for AOL to disconnect them as AOL makes it for customers to cancel their own accounts.

      --
      -CausticPuppy "Of all the people I know, you're certainly one of them." -Somebody I don't know
  18. Switch? by Rufus88 · · Score: 2, Interesting

    So, this means AOL customers might have to switch to RoadRunner?

  19. The reality is.... by wstephens · · Score: 2, Insightful

    The Broadband that these people have is ordered via AOL and billed via the broadband provider. The reality is that AOL is telling these folks that they need to establish a direct broadband relationship with Bell South rather than trough AOL. This way the customer brings their own access. It's really better for the user since they won't have to call AOL for broadband connectivity issues. Once the user has Broadband that doesn't requie the use of the AOL client they'll realize that they don't need AOL.

  20. How in the world did AOL blow this one? by lpangelrob2 · · Score: 4, Insightful
    Wow. It seemed like a partnership that could've been good... AOL had 23 million subscribers, Time-Warner has a godawful amount of content. Broadband was just getting started, and they had a large set of customers they could've introduced to Time Warner's content, provided at discount prices... heck, they didn't even have to provide the broadband pipe itself.

    WTF? Who blew it?

    Regardless of what people say about the economy, there's a lot of disposable income out there. Surely they could've sold a broadband content service to other people at a bargain, and become the dominant provider like they were for dial-up. Now all that's left is dial-up, fading away...

    I guess maybe AOL should get used to finding its home in the lower-middle class bracket... too bad they coulda been a contender elsewhere.

  21. Re:I don't get it by Feynman · · Score: 2, Interesting
    I would think they would be getting rid of dial up connections, not the broadband.

    From the article:

    Most of AOL's 23 million subscribers receive standard dialup service for $24 a month.

    Why would they get rid of most of their customers? Undoubtedly, this is a decision based on the ROI. Sure, their revenues per subscriber might be higher for broadband, but dial-up may have a higher profit per subscriber.

  22. Re:AOL by stratjakt · · Score: 2, Interesting

    Because selling the content as an add-on to existing broadband services (Comcast, Verizon DSL, etc) is more lucrative than running their own native ISP.

    Sounds like a smart move to me.

    --
    I don't need no instructions to know how to rock!!!!
  23. In the south.... by Electric+Eye · · Score: 4, Funny

    ...people think broadband is a southern rock group with chicks.

    "What yuh doin' with that thar 'puter, Billy Bob?"

  24. Open Letter To AOL by Dracos · · Score: 4, Insightful

    Dear AOL,

    As I stated to your telemarketing rep who called me last week, I have DSL and no need for your "value added" content and/or advertising. Also, let me repeat what I said to her to close the conversation: AOL, aside from SCO, is the laughing stock of the IT industry. Every decision you make is simply stupid.

    These comments are a result of my being offended by your "Help us make the internet better" ad campaign, which caters to your notoriously unsavvy user base. Here is how you can accomplish this:

    1. Use your assets against your enemies, instead of using their assets against yourself. What sense is there in basing your browser on a competitor's? You own Netscape: Make it grand again.
    2. Speaking of Netscape, stop trashing it. Netscape means browser, not web portal, not cheap ISP, not kitchen sink.
    3. Realize why users are leaving in droves: Broadband is killing dialup; your users, as they graduate from internet preschool, don't need your handholding anymore; your pricing model is several years out of date, outrageously high.

    The only sensible thing you have done in the past 5 years is seed the Mozilla Foundation. Somehow you managed not to stifle the entire project.

  25. Let me get this straight: by acoustix · · Score: 4, Interesting

    -AOL buys Netscape (possibly to cash-in on the lawsuit against Microsoft)
    -AOL buys Nullsoft (maybe AOL wants their own branded media player)
    -AOL signs contract with Microsoft to use IE browser (instead of using Netscape's browser that they paid 4.2 billion for)
    -AOL lays off Netscape crew, but decides to fund Mozilla
    -AOL is shutting down Nullsoft
    -AOL is getting out of the broadband ISP business.

    Has AOL done anything good in the last few years? What the hell was Time Warner thinking?

    -Nick

    --
    "A plan fiendishly clever in its intricacies"- Homer Simpson
    1. Re:Let me get this straight: by TheHawke · · Score: 2, Funny

      Ask the Fuckwit Steve Case. He was the one that ramrodded most of the mergers.

      --
      First rule of holes; When in one, stop digging.
  26. Not AOL for Broadband by rlandrum · · Score: 3, Informative

    AOL Broadband is not the same as AOL for Broadband. The difference is that AOL for Broadband is a $15/month service that let's users who already have a broadband connection access higher quality content.

    AOL Broadband is AOL's attempt at being a DSL provider. It didn't work out. In fact, ditching it is probably a good thing.

    Hope that clears things up a bit.

  27. Shielded Customers? by Zemplar · · Score: 2, Funny

    Perhaps by only offering slower connections AOL can further delay their current subsribers discovery of how lackluster the AOL services really are?

  28. Comment removed by account_deleted · · Score: 4, Interesting

    Comment removed based on user account deletion

  29. Find a new carrier? by zakezuke · · Score: 2, Interesting

    When I think about early broadband access, I think about how it was nice to have an account on a smaller ISP. But then without any warning at all they get gobbled up by a bigger ISP. Sometimes they went under and sold their customers to EarthLink for example, other times they got an offer they couldn't refuse. While this was frustrating, you at the very least didn't typically notice any downtime.

    Why wouldn't AOL sell off their unwanted customer base to someone else?

    --
    There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.