The Time Warner company has cut the price of its unlimited dial-up service to $19.95 a month from $23.90 for new U.S. subscribers who sign up within the next few weeks. AOL is similarly lowering the price of its 10-hours-a-month dial-up service to $9.95 a month from $14.95 for a limited time.
The special offer, which also includes 50 free days of service to new subscribers to the $19.95 plan, is aimed at broadband subscribers who want dial-up when they're away from home, an AOL representative said. The company has no plans for a permanent price change, the representative added.
AOL is the largest Internet service provider in the United States but has been steadily losing subscribers to lower-cost dial-up services and high-speed services from cable and phone companies. A study last year by ComScore Networks revealed, with about half of all Internet users in many major U.S. cities relying mainly on broadband connections.
AOL is also under attack by cheaper dial-up service providers such as NetZero. That rival offers unlimited dial-up packages for as low as $9.95 a month, a deal it currently advertises on its Web site as "half the cost of AOL."