FREE FOR ALL: ISPs rush to attract subscribers AT&T cuts prices; EarthLink bets on quality service and broadband .

Advertising Age, August, 2000 by Gilbert, Jennifer

The momentum of free ISPs, broadband service and America Online is shaking up the fragmented ISP market -- and changing the game for some major services as they jockey for users and advertisers.

EarthLink, the distant No. 2 paid service behind AOL, vows to stick with paid services. AT&T Corp., with its user base slumping, has slashed its price to $4.95 a month for one service. Some analysts expect Microsoft Corp.'s MSN, the No. 3 standalone paid ISP, to introduce a free service, which could upend the market.

Paid ISPs, including MSN, Prodigy Communications and AOL's value brand CompuServe, have offered hefty rebates during the past year to attract subscribers. Rampant discounting has pressured services that rely on subscription revenue rather than...

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