AOL has announced that it is launching its own broadband Internet service in the UK. The service will cost subscribers £34.99 per month. AOL is also offering a cut-price modem as part of the deal for customers who sign up before July 15. The company is the last of the major UK ISP’s to launch a broadband service.
The broadband service will include access to exclusive multimedia content from the Time Warner arm of AOL. AOL is offering these premium services at premium prices, as the company is charging around £10 a month more than its main rival ISP’s, BT Group and Freeserve. Market analysts remain sceptical as to whether customers will be willing to pay a higher price for the extra features that AOL plans to offer.
AOL is hoping to sign up a large number of subscribers to its broadband service in order to improve the performance of its loss making operation. The company currently has around 1.7 million subscribers in the UK.