AOL to Offer Email, IM, and VoIP Free to Non-Subscribers

7:00 am on August 3, 2006 | Category: Email, Internet, Messaging, Web Services

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AOL’s parent company, Time Warner, has announced plans to start offering many of the ISP giant’s web services, including email, instant messaging, and VoIP, for free to all broadband internet users.

This transition should be complete by early September, marking a significant transition in AOL’s business model to join the online advertising-driven web giants like Google and Yahoo.

“This is the next logical step for AOL to capitalize further on the explosive rise in broadband usage and online advertising,” commented Time Warner President and COO, Jeff Bewkes.

Offering AOL services for free to internet users outside of the company’s dialup customer base is intended to increase traffic onto the AOL.com website, and bolster internet advertising revenues.

“AOL’s core strategy is still dial-up…but (dial up) is clearly waning and they do need to find a way to stay relevant in the broadband world,” said JupiterResearch analyst, Joe Laszlo. “Longer term, the AOL strategy is definitely one of being a media company that maybe makes a little money on the side off subscription revenues.”

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    Edited by Jeremy Maddock