AOL Unbundles Itself From Broadband

UPDATED America Online has begun to notify customers in nine Southern states that it will cease its broadband Internet service on January 17, 2005.

The change affects members who have been receiving a bundle of DSL connectivity and AOL. Current customers must find a new broadband carrier by the cutoff date, or they will automatically become standard AOL dial-up members. AOL cited lower prices as a primary reason for abandoning its DSL package.

AOL's decision does not involve its AOL for Broadband service, which will continue to work on any DSL or cable connection.

"Two years ago we announced that we were pursuing a new broadband strategy. Where once AOL provided wholesale connectivity plus the AOL service to our customers, now we simply provide the AOL service, which can be added to any DSL or cable connection," AOL spokesperson Anne Bentley told BetaNews.

The move follows AOL's acknowledgement earlier this year that it would not be signing up new customers for broadband connectivity. AOL expects to completely phase out its bundled offerings in all states within the next year, migrating subscribers to lower-cost DSL alternatives.

"AOL has been working with BellSouth towards an arrangement that takes advantage of these price decreases and enables us to pass them along to our members," said Bentley.