David Cassel (destiny@wco.com)
Thu, 12 Mar 1998 15:00:50 -0500
P h o n e y P h o n e R a t e s ~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~ "You've got junk mail!" AOL used subscriber home addresses to send unsolicited junk-mail last week hawking a long-distance service. Calling it a "member perk", the pitch urged subscribers to switch carriers. "I trashed it," one AOL Watch reader remarked, "because if it's like the online service...NO THANKS!" The advertisement arrived one day after AOL's two-and-a-half hour nationwide outage last Monday (saying AOL Long Distance was committed to "delivering the world class customer service you expect...") The same day, e-mail problems lingered. "I've been trying to get mail in for over a day now," a subscriber told Ziff-Davis News, "only to be told that service is unavailable." Ziff-Davis also reported they were unable to send mail to AOL Tuesday afternoon--and noted a crash-inducing security hole had been discovered in AOL's "Instant Messenger" software. http://www.zdnet.com/zdnn/content/zdnn/0224/287828.html But perhaps the service -- Tel-Save -- should change their name to "just-TELL-them-they-save." AOL's own advertisements showed MCI's rate was 44% cheaper on Sundays, at five-cents-a-minute ( http://www.aolwatch.org/phonrate.gif ) -- and today MCI announced they will match Tel-Save's pricing every other day of the week! http://www.mci.com/aboutus/products/netsavings/overview.shtml MCI will also offer its customers unlimited internet access for $14.95 a month -- allowing them to get an internet service AND access to AOL for just $3.00 more than the cost of AOL dial-up access alone. MCI announced their pricing last week -- so AOL went ahead with an advertisement Monday that claimed AOL had negotiated a deal for long-distance service at "an unbeatable price." http://www.aolwatch.org/unbeat.gif Since MCI's rates became effective Monday, AOL's price was unbeatable -- for the hours remaining before MCI opened for business. It's not the first time AOL's "perks" have actually consisted of higher prices. For instance, AOL Watch reader Mark P. enjoys the nationwide flower distributor 1-800-Flowers, and usually purchases flowers through their web site. When he visited the flower vendor's AOL area last June, "A quick jump over to the 800-Flowers web site confirmed my suspicions -- it was $1 more on AOL." There was no mistake. "A brief check of other items on the site showed all service charges on AOL were $1 more than what the 800-Flowers web site showed." Discrepancies persisted six months later. "Some things were the same price...but others differed by as much as $2 or $3." And it's still true today. Amazingly, AOL's subscribers can by-pass the surcharge simply by using keyword http://www.1800flowers.com instead of keyword "flowers". AOL aggressively promoted the more-expensive option on their welcome screen and exit screen before Valentine's Day ("Last chance!" messages warned, and "Don't wait!") -- though in a kind of cover-up, the price difference for roses vanished two nights before the 14th. "The daily featured selections were usually equally priced," Mark P. remembers. "It was the other, non-featured items that showed the price differences." AOL affected Valentine's Day in other ways. A correspondent for Yahoo! Internet Life writes that he sent several e-mail valentines to his sweetheart on Thursday, February 12th. "They arrived Sunday evening... the 15th. That's nearly 72 hours to go from my office upstairs to her laptop in the dining room downstairs!" "I knew something was up when she put a deadbolt on her peignoir," he concluded. "Thanks a million, AOL." http://www.zdnet.com/yil/content/surfschool/guru/guru980225.html "This is just another example of AOL adding NO value to one's internet experience," Mark P. observed. In fact, it's not hard to see why AOL pushes the more-expensive services. In the case of Tel-Save, AOL plugs them "in return for a 50% to 70% cut of the pre-tax profits Tel-Save generates on revenues created from AOL's marketing efforts," the Motley Fool reports. ( http://fool.yahoo.com/fool/97/06/13/dna/p2.html ) In addition, AOL received a king's ransom of $112 million for their efforts. Herb Greenberg, a well-respected finance columnist, noted that "It was a good deal for AOL, which was in dire need of cash." http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1997/06/12 /BU9292.DTL But the value of the offer depends on carefully-selected information. AOL's mailer gives the price of a ten-minute MCI call as $2.50 -- when in fact, it's now just 90 cents -- and 50 cents on Sunday. (AOL's on-line advertisement concedes that only 150,000 members had signed up for their service--despite aggressive marketing pushes.) Subscribers shouldn't be surprised to receive junk mail from AOL. "We rent addresses of members to pre-selected companies," Steve Case conceded in a July announcement. Though this practice is virtually unknown among internet service providers, cash-hungry AOL saw their user's home addresses as an irresistible gold mine. For angry subscribers, the best offer might be Earthlink's "Get Out of AOL Free" card. http://start.earthlink.net/cgi-bin/signup?osform_template=outfree15.oft&RN=8 01703 THE LAST LAUGH "I'm not sure how much longer I'll keep AOL," one subscriber complained. "I'm down to 40 megabytes free on this old hard drive -- and that 14 megs in AOL's directory is looking mighty useful..." Though AOL's television ads feature a teenager describing AOL as "so easy, even my parents can use it," the AOL Watch reader reports the opposite response. "My 12-year-old is telling me to dump it, and HE'S the reason I've kept it!" David Cassel More Information - http://www.aolwatch.org ~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~ Please forward with subscription information and headers. To subscribe to this list, type your correct e-mail address in the form at the bottom of the page at www.aolsucks.org -- or send e-mail to MAJORDOMO@CLOUD9.NET containing the phrase SUBSCRIBE AOLWATCH in the the message body. To unsubscribe from the list, send a message to MAJORDOMO@CLOUD9.NET containing the phrase UNSUBSCRIBE AOLWATCH. ~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~