AOL Tests Low Cost Netscape Dial-Up Service

Earlier this year, industry watchers projected America Online's desire to enter into the discount Internet service arena using the name recognition of its Netscape brand to procure instant recognition among cost-conscious consumers.

Now that the implementation plan is complete, AOL is ready for a full-scale roll out. The Netscape Internet service is presently seeking testers to join its extended family of subscribers.

A beta preview of the service is maintaining open enrollment to any tester interested in dishing out $1 USD per month through February, 2004.

Benefits of the service include unlimited Internet access, personalized e-mail addresses, nationwide access via AOL dial-up numbers, searches enhanced by Google, and a simplified low-footprint client. The software will also be banner-ad free, and enhance page load times.

The value narrowband service completes the circle of AOL's product offerings - descending from its upper echelon AOL for Broadband service to premium AOL dial-up, and now to Netscape.

Company spokesperson Anne Bentley told BetaNews the decision to offer a lower-priced dial-up service did not mean AOL is acknowledging that proprietary content alone cannot retain its consumer base. "It means we have all of the bases covered," Bentley said, "providing quality options no matter what the user's online needs require."

According to Bentley, customers of low-cost Internet access solutions are distinct from those who buy the AOL service. "Netscape is targeting a significant, growing market segment that cuts across demographic groups."

"There are still plenty of consumers satisfied with dial-up and looking for little more than an ISP service. The new Netscape service would help AOL to extend its reach to budget buyers looking for a brand-name ISP but not needing or wanting to pay for the full AOL service," Jupiter Research senior analyst Joe Wilcox told BetaNews.

With Netscape, AOL is looking to value shoppers and "Web-savvy utility shoppers" whose use of online services is strictly limited to a functional checking of email and occasional search for information.

"The biggest selling point may be presence," noted Jupiter's Wilcox. "By using AOL's existing dial-up network, the Netscape service would be widely available, and that includes locales where there might not be broadband access and consumers unable or unwilling to pay for the full AOL service."

The Netscape Internet service is due to launch sometime next year, and is priced at $9.95 USD per month - compared with $14.95 USD for AOL Broadband services (on top of the cost of Internet access), and $23.90 USD for AOL's flagship dial-up offering.

Nate Mook contributed to this report.

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