Web firm caught in popularity net
Friday 31 January 1997
Related articles
The telephone lines have been clogged ever since AOL hit upon what seemed in December like the brilliant idea of allowing subscribers unlimited access to the service for a flat monthly rate of $19.95 (pounds 12.30). But, because local calls in America are virtually free, web junkies have been staying on and on and on-line, sending e-mail, surfing the Web and nattering in chat rooms.
At peak hours, which means usually the evening, only the lucky few succeed in getting through. For it turns out, as AOL confessed last week, that only 3.5 per cent of its subscribers can be on-line at any one time.
In response to an outcry by customers the attorneys general of 36 states initiated proceedings to hold AOL accountable. "You can't offer something to a subscriber and then not be able to deliver," said James Ryan, the attorney general of Illinois.
AOL could not but agree and will now be offering full refunds to customers in the US - but not abroad - who used the service for less than two hours either in December or January. As part of the agreement with the legal authorities, AOL will also suspend advertising in February to try and stop its customer base growing beyond the present figure of 8 million.
Interestingly, AOL's stock rose by $2 per share after the agreement was announced, the calculation having been that the company will not be paying out much more than $25m (pounds 15.4m) in compensation but will more than make up the shortfall in the long run by demonstrating its determination to forge a responsible relationship with its customers.
The competition, however, is happy. CompuServe, which lags far behind AOL in subscribers, launched a new television advertisement on Sunday. The screen went blank and you heard a telephone number being dialled followed by a busy signal, then again and then again.
Then a message appeared urging viewers to subscribe to CompuServe by dialling 1-888-NOT-BUSY.
-
Have shock jocks gone too far after Rush Limbaugh called Sandra Fluke a slut?
-
Former Google exec says he has 100,000 emails showing how 'immoral' company avoids paying UK tax
-
Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
-
World news in pictures
-
British man faces court after confessing to slitting two children's throats in Lyon flat
- 1 Asteroid nine times the size of the QE2 liner to sail pass Earth
- 2 Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
- 3 British business: We need to stay in the European Union - or risk losing up to £92bn a year
- 4 You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
- 5 It’s official: thanks to Stephen Hawking's Israel boycott, anti-Semitism is no more
Get your summer started with British Military Fitness
BMF is the UK’s biggest and best loved outdoor fitness classes
Visit York
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Independent Dating
iJobs General
Senior Thermal Design Engineer - Dorset
£45000 - £50000 per annum + Bonus: Progressive Recruitment: Our client is reco...
Full Time Permanent Primary School SENCO Required
£28800 - £36000 per annum: Randstad Education London: Full time, permanent SEN...
Senior Employment Solicitor - Birmingham
Excellent Package: Austen Lloyd: This is a senior appointment with huge potent...
Teaching Programme Officer with Qualified Teacher Status
£28000 - £31500 per annum + benefits: Randstad Education Newcastle: Permanent ...
Day In a Page
The price of pacifism
Jason Isaacs: Groupies, theatre bores and James Bond
Sealand: 'Micronation' or illegal fortress?
Legend of James Hunt has set Hollywood hearts racing
Macklemore: 'I don't have moderation'







Comments