Business Services Industry

Flat-Rate Pricing Keeps America Online's Telecom Lines Busy.(Originated from San Jose Mercury News, Calif.)

Knight Ridder/Tribune Business News, December, 1996 by Wasserman, Elizabeth

SAN JOSE, Calif.--Dec. 18--The busy signal is now the bane of many America Online subscribers, since the nation's largest Internet service provider instituted its $19.95 monthly flat-rate charge for unlimited access.

The company warned consumers before the Dec. 1 switch that "traffic congestion" was likely once its 7 million subscribers no longer had to pay for service by the hour. Even at that, the Dulles, Va.-based company has been working round-the-clock to add modems, network connections, phone lines and computers to accommodate a surge of 30 percent more daily online sessions.

Those online sessions are also lasting an average of 20 percent longer, a company spokesman said Tuesday, indicating that users who experience difficulty in making...

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