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Blog 'covad' » AOL to offer Covad DSL

March 10, 2004, 5:05 PM PST

By Jim Hu

Staff Writer, CNET News.com

America Online on Thursday is expected to announce a partnership to offer broadband Internet service through Covad Communications Group.

The deal lets AOL offer its dial-up Internet subscribers speedier broadband access through Covad's digital subscriber line (DSL) service. Covad will handle all billing, customer service and access issues, while AOL offers its familiar interface and content.

Subscribers will have to pay $14.95 a month for AOL for Broadband--a flashier version of the online service--on top of the $34.95 a month for Covad's 1.5 megabits per second connection. That's a $49.90 total monthly fee for subscribers. Covad will also offer a 3 mbps plan for $39.95 later this year. Both plans require a 12-month commitment.

The partnership is different than AOL's previous attempts to sell customers a content and access bundle for $54.95 a month. That arrangement required AOL to lease DSL lines from local phone companies and manage all elements of the service, including customer service and billing.

AOL has since dissolved those leasing deals and has watched a similar partnership with cable giant Comcast fade away. Instead, the online leader hopes people using other broadband providers will want to pay an additional $14.95 a month to access its service.

Appealing to broadband users has been a major priority for AOL. The Time Warner division has watched its narrowband subscriber base steadily decline, culminating in a net loss of 2.2 million subscribers in 2003. However, AOL added 1.2 million broadband members, which includes its "bring your own access" customers, to a total of 3 million subscribers.

Covad will continue to offer DSL access independently. The company also powers DSL service for AT&T.

Story at CNET News.com
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LBDSL
Lightning Bolt
join:2002-01-07
Auburn Hills, MI

LBDSL

Member

Get away from AOL

People still need to get away from AOL "Fisher Price" interface. Why pay more for the AOL/Covad service, when you can get the same service, and speed from Covad.net or other ISP partners for less.

People need to just move away from AOL, and I understand some people are scared or change, as AOL is all they know, but the Internet is really user friendly.
neftv
join:2000-10-01
Broomall, PA

1 edit

neftv

Member

Re: Get away from AOL

Now wait it says "Covad will also offer a 3 mbps plan for $39.95 later this year." I'm paying that for 1.5 mbps on the telesurfer plus. Is that a hint that they will up the bandwidth on the Telesurfer plus plan too? I really don't need the extras of static IP and whatever else the home office plan gives. The Zyxel 645 which I have can surely handle 3 mbps.

A Clone
join:2004-03-08
Palo Alto, CA

A Clone

Member

Internet Explorer

MayB. and if U quit AOL U still can use IE and Netscape
they do the same thing people just have diffrent taste