Despite its focus on expanding beyond its core ISP services, AOL has resolved to expand its broadband internet service network.
This will be done via partnerships with BellSouth, Time Warner, Verizon, and other DSL suppliers, making the $30/month AOL-branded broadband service available coast-to-coast, in most major US markets.
“With the new AOL broadband network, we’re leveraging the strength of our service and our customer relationships to make the most of the shifting broadband marketplace,” said Jonathan F. Miller, the CEO and chairman of AOL.
The company is hoping that this latest series of agreements and expansions will help solve the problem of not offering a true high-speed service to its many millions of customers. After all, exclusively offering overpriced dialup service can only send AOL’s total number of users in one direction.
“AOL has tried many things over the years to solve this problem and none of them have worked,” said independent telecom analyst, Jeff Kagan. “This [plan] sounds good. It’s a branding solution that helps AOL remain important to the customer. AOL has to prove it works, but it could be what AOL is looking for.”
AOL’s next challenge will be to lure subscribers for the new service, which they plan to do with a wide-scale nationwide advertising campaign in television, radio, and print media. Existing AOL members will also be targeted, and informed about the benefits of upgrading.