AOL Buddies Up to Telecom Giants


According to a Reuters report, AOL today said that it has landed two new partnerships with broadband providers so it could offer low-cost, high-speed service.

The online monolith, which recently opened its new free portal, has now signed deals with telecom giants BellSouth and AT&T to offer a bundled service that includes high-speed Internet access, exclusive programming and security features at prices that range from about $26 to $30 per month.

The company has also expanded existing agreements with Time Warner Cable and Verizon Communications Inc., helping it stitch together a national network of service providers that will also sell the AOL service.

Once the Internet’s leading portal, AOL has seen its online ad share and subscriber base depleted by Yahoo and Google. Now they’re ready the rebuild and capitalize on the broadband proliferation. With the new, the company has focused on offering more of its music, videos and services for free on its Web site to boost its online advertising revenue.

“What we’ve seen from early indications is that as we’ve moved customers from dial-up to broadband, we’ve seen significant improvements in member life,” Joe Redling, president of AOL access services, told Reuters.

Customers will be able to sign up for these deals by January 30. AOL plans to launch a nationwide campaign to market the new service.


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