David
Cassel
(destiny@cloud9.net)
Sat, 27 May 2006 18:42:17 -0400
S h a k e d o w n s ~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~ This month AOL laid off 1,300 of their customer service employees. Another 700 were laid off last fall. http://biz.yahoo.com/ap/060509/aol_layoffs.html?.v=12 After this month's layoffs, callers to AOL began hearing a recorded warning that "Due to 'system enhancements,' members may experience longer-than-normal hold times." (AOL's recording then apologized for this "temporary" inconvenience.) The real reason for the layoffs may lie in AOL's most-recent quarterly report. Released May 3, it shows that in the last year over 3,000,000 AOL subscribers cancelled their accounts! http://finance.yahoo.com/q/sec?s=TWX In fact, on average 9,277 AOL users cancel their accounts every single day. An AOL user cancels their account every nine seconds. In the time it's taken you to read this paragraph, another AOL user has already cancelled their account. But even more accounts are being cancelled than those figures suggest. AOL once reported an increase of 400,000 members for a three-month period when 1.7 million members cancelled their accounts. AOL had performed a marketing blitz in that same period to attract 2.1 million new members. http://www.aolwatch.org/hotelaol.htm Their most-recent figures use the same accounting trick. For the last 90 days, AOL reported a drop of 835,000 members. But AOL included over 2 million non-paying members using free trial accounts (or members who received discounts or free months of service). This suggests that nearly 3 million AOL members have called to cancel their service in just the last 90 days! In fact, PC World magazine recently named AOL "the worst technology product of all time," and marveled that "all the while, AOL remained more expensive than its major competitors." http://pcworld.com/reviews/article/0,aid,125772,pg,2,00.asp A desperate AOL has tried retaining members with price discounts. Over 11% of AOL's users are now on free-trial accounts (or the special free or reduced-rate accounts given to members who attempt to cancel). AOL also reports 31% of their members are on the cheaper 3-hour or 10-hour pricing plans, or on plans that generate less than $15 a month. Cash-hungry AOL recently raised dial-up prices by over 8% - but now they're predicting that more members will simply switch to the cheaper plans. AOL now expects the higher prices will slow down their badly-needed drive for new members, and they acknowledge that their ad campaigns are already bringing in fewer new members. Two statistics tell the story. - Since 2002 AOL has lost 30% of its members. - The number of AOL subscribers is lower than any time since 1999. And yet AOL admits that in "the foreseeable future," they're expecting their subscriber count will drop still further! http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0000950144-06-004319&Type=HTML A Washington Post columnist summarized the emails she'd received from readers. "There must be 50 ways to leave your AOL." She even offered a handy tip. "[H]ardly anyone -- including myself -- seemed to know they could continue reading their AOL mail for free, even if they quit AOL and never paid the company another dime." It's surprisingly simple, according to the reporter. Users simply create a free web email account at AIM.com, and then activate its automatic forwarding of email from their old AOL address. http://www.washingtonpost.com/wp-dyn/content/article/2006/03/01/AR2006030102349_2.html When one user told AOL they knew they could continue receiving their email after cancelling the account, AOL immediately rescinded the $2-a-month price increase. http://www.washingtonpost.com/wp-dyn/content/article/2006/03/01/AR2006030102349_3.html The Washington Post also reports that "to offset the shrinking number of subscribers who pay a monthly fee," AOL is trying to sell more advertising - even if this means installing ads on their users' web pages. "They're flashing and screaming at the top of my blog," one AOL user complained. Though the "AOL Journals" service had been ad-free for several years, AOL's need for revenue apparently led to a change in policy for 600,000 users. The Washington Post's headline summed up the situation. "AOL Journals: You've got ads." http://www.washingtonpost.com/wp-dyn/content/article/2005/11/22/AR2005112201648.html http://www.calacanis.com/2005/11/26/on-the-aol-journals-advertising-mini-brouhaha/ But it isn't just AOL that's trying to make money from advertising. A rogue AOL employee sold 92 million AOL screen names to spammers, resulting in "up to 7 billion" spam emails, according to the Associated Press. CNN/Money - which is owned by AOL Time-Warner - reports that the AOL employee ultimately assembled a complete list of every AOL subscriber's screen name, zip code, phone number and type of credit card. According to the Associated Press, that list "is believed to be still circulating among spammers." AOL said they "deeply regretted" the incident. http://money.cnn.com/2004/06/23/technology/aol_spam/ http://www.msnbc.msn.com/id/8985989/ http://wired.com/news/ebiz/0,1272,66518,00.html http://www.answers.com/topic/jason-smathers Ironically, AOL's new installation procedure displays a full-screen ad touting AOL's role in "Helping you feel more safe and secure" by "blocking online intruders." http://www.aolwatch.org/AOLSECUR.jpg It's not the first time AOL employees have been arrested. http://www.aolwatch.org/ccaol2.htm http://www.aolwatch.org/list/0058.html And in 1997, one former AOL customer service staffer even described taking joy-rides on on the accounts of AOL celebrities, including Rosie O'Donnell, quarterback Troy Aikman, and Robin Quivers from the Howard Stern show. http://www.aolwatch.org/list/0075.html In another incident, AOL hired an 18-year-old with a record of misdemeanor charges for using stolen credit cards, according to Wired News. Within 90 days the staffer was reprimanded for "repeated misuse of confidential account information" - yet continued working at AOL for another year. "She baited celebrities into online conversations by using private information she had collected about them without their knowledge," Wired News reports - including Tom Hanks, Goldie Hawn, Carrie Fisher, Meg Ryan and a movie producer. "She's essentially an electronic stalker," one privacy advocate complained. http://www.wired.com/news/culture/0,1284,63147,00.html But as AOL grapples with reduced staff and out-of-control employees, they apparently can't even provide users with reliable access to their own email. An AOL subscriber named Michael Franks discovered that AOL deletes their users' email after a certain period of time. So Franks periodically forwarded all his emails to another of his AOL screen names. For several months, as a way of working around AOL's shortcomings, he was forwarding as many as 400 emails - to himself. "Somehow this triggered their system that I was 'bulk emailing'," he told AOL Watch - and last January, AOL canceled his account. Franks was baffled. ("I was not bulk emailing anyone... I was just forwarding emails TO MYSELF!!") When he explained the situation to AOL, they re-activated his account and flagged his screen name as being okay for large mailings. But they also mistakenly removed his main screen name from that same list - without telling him. By April, the same forwarding had triggered AOL's malfunctioning filters -- and AOL cancelled his account again! "It's like a child's game of 'Simon says'," Franks complained. "They said I was on a six month probation (that I knew nothing about) and [that] was my last chance. And I'm permanently terminated." Who is Michael Franks? "I'm on the board of directors of the Republican Party of Texas, and just got through running for the Texas Legislature." Among the people he emails are the governor of Texas, its state legislators, and the party county chairman. http://www.michaelfranks.org/ After six years on AOL, "THOUSANDS of people across Texas have my email address for basic communication," Franks complains. Yet his account has suddenly been de-activated. It's a matter he'll be discussing with the Texas Attorney General - who happens to be a personal acquaintance - and "I've already contacted a few lawyers..." He's lost access to hundreds of emails - including some involving a lawsuit. "I've called and called AOL... They keep giving me the run-around." The account re-activation department refers him to AOL's "Community Action Team," who tells him they simply aren't able to re-activate an account that's been cancelled for bulk mailing. The phone representatives he talked to advised him his only recourse was sending a written letter to AOL's "Community Action Team." "It's like they have NO mechanism or method of helping someone in my situation." Even AOL's employees have had similar problems. In 2001 Time-Warner had insisted all its employees use AOL's email software, according to the Wall Street Journal, but within a year the Time-Warner executives had found a lot to complain about. "[T]he email software frequently crashed, staffers weren't able to send messages with large attachments, they were often kicked offline without warning, and if they tried to send messages to large groups of users they were labeled as spammers and locked out of the system." http://aolsucks.org/list/0106.html#wsj According to the Journal, an internal memo AOL sent had warned Warner Brothers executives that 2% of their email was simply disappearing. Dissatisfied employees of AOL Time-Warner had to resort to communicating with FAXes or Federal Express, and at one point they'd reverted to simply printing an important email - and then delivering it in a taxi! Within one year, AOL Time-Warner conceded defeat, and stopped requiring that their employees use AOL's email software. AOL's irregular mail delivery has recurred over the years. In 2002 AOL deleted hundreds of thousands of emails from Earthlink subscribers. AOL even deleted emails that Harvard University had sent to tell students they'd been accepted to the college. http://aolsucks.org/list/0106.html In the past AOL has also mistakenly stopped delivering email from various services including the Microsoft Network, FlexNet, Fuse.net, En.com, Cybercom.net, Gorilla.net -- and even Google. Earlier this month the Wall Street Journal reported that "Possibly millions of AOL members were temporarily unable to receive some mail from Google's Gmail users...after AOL held up messages from some new Gmail servers over concerns it might be spam." http://www.azcentral.com/business/articles/0503wsj-blocking-spam03-ON.html AOL founder Steve Case said that spam was the #1 complaint from members - back in 1996. http://www.aolwatch.org/list/0007.html http://aolwatch.org/aolwatch28.htm But ten years later, AOL still hasn't found a way to address the problem. And malfunctioning spam filters online block as much as 20% of the legitimate emails sent to many users, a market researcher told the Journal. And the same filters block emails between friends about once a month. Rather than correct the problem, AOL has apparently found a way to make money off it. Under a new policy, "affluent mass-emailers who are willing to pay AOL the equivalent of an 'email tax' would get to bypass AOL's spam filters," writes one activist site. http://www2.dearaol.com/faq http://www2.dearaol.com/action The cost of "accreditation"? $400. https://mailcenter.goodmailsystems.com/Certification/SelectCustomerType.jsp What happens to the rest of us? "Everyone who can't afford to pay AOL's 'email tax' - including charities, small businesses, civic organizations, and even families with mailing lists - will have no guarantee that their emails will be delivered," the activist warns. "AOL's pay-to-send system would actually reward AOL financially for degrading free email..." Another critic joked to the L.A. Times that AOL's new policy resembles a mafia protection racket. "Nice e-mail newsletter you've got going. It would be a shame if it got hurt by getting caught in our filters..." http://www.latimes.com/technology/la-fi-aol14apr14,1,1839518.story?coll=la-mininav-technology&ctrack=1&cset=true Even paying hundreds of dollars doesn't guarantee the email gets delivered, says Danny O'Brien, activism coordinator for the Electronic Frontier Foundation. "That's just the non-refundable accreditation process." Amazingly, more than 75% of the people who pay hundreds of dollars to complete the "accreditation" process are rejected anyways. http://www.spamdailynews.com/publish/Goodmail_rejecting_three_quarters_of_applicants.asp And even after completing the process, additional fees are charged for every email sent. http://itmanagement.earthweb.com/article.php/3603151 Massive opposition quickly rose to AOL's scheme, with over 500 groups signalling their anger, including everyone from the AFL-CIO and the Electronic Freedom Foundation to Craig's List founder Craig Newmark and even Boy Scout Troop 64 of Princeton, New Jersey. http://www2.dearaol.com/moreorgs Their support was noted on the web site DearAOL.com. In a disturbing twist, AOL immediately began blocking any email containing its URL. "I forwarded www.DearAOL.com to my own AOL account and it was censored," one user told the site. "Apparently I can't even tell myself about it." Reporters at C|Net and the L.A. Times confirmed that AOL was blocking any email with the site's address - raising the possibility of a world where AOL would pick and choose which emails they'd like to deliver. After media attention, AOL quickly reversed their policy, claiming that it had merely been the result of "a glitch." http://news.com.com/AOL+charged+with+blocking+opponents+e-mail/2100-1030_3-6061089.html With fury building, AOL apparently hoped they could implement their email discrimination without their members noticing. On May 5 AOL "flipped the switch on the sly," the EFF's activism coordinator noted, warning that AOL now can "rent out" your inbox without permission. He labelled his post "AOL starts the shakedown." http://www2.dearaol.com/node/view/54781 How responsive would AOL's postmaster be to non-paying members? Earlier this month a test call to AOL's "Postmaster Help Desk" was left on hold for over an hour. (After an AOL recording warned that holding time would be "greater than 10 minutes" - and another announcing that "AOL is committed to delivering exceptional customer service!") While AOL's web page promises emergency issues can be addressed "24 hours a day, 7 days a week," on Sunday May 14 AOL's recording simply asked complaining internet service providers to call back the next day, during "business hours." Ironically, this recording was preceded by a series of cheery but mis-matched introductions. ("Thank you for calling! For quality control purposes, this call may be recorded! Thank you for holding while we connect your call...") http://postmaster.aol.com/faq/mailerfaq.html#isp Now as AOL's new mail policy goes into effect, anyone sending email to AOL is at the mercy of their understaffed support lines - recently reduced by 1,300 employees. And they're also at the mercy of AOL's malfunctioning mail filters. Michael Franks warns that the end result is horribly ineffective. "They might as well have an answering machine pick up every call and say... 'Thanks for reaching our pre-recorded message. You are so foolish to think we are here to help you anyway. You are wrong... "You're screwed, we don't care how we just affected your life, business, etc. Go to hell -- but thanks for using AOL." Franks feels AOL is holding his business hostage, and he's already decided to transfer his professional contacts to a different service, because continuing to use AOL is too risky. "I shouldn't have to have my heart racing and living in TERROR over this when I haven't done anything wrong." There's a simple solution at 1-888-265-8008. "If you're unhappy with your current providers' policy, you should switch ISPs," says Danny O'Brien, activism coordinator for the Electronic Frontier Foundation. When angry AOL users call to cancel their accounts, O'Brien has one final suggestion. "Let them know why you're leaving." Even users who keep their AOL accounts can make a difference, according to the "Take Action" page at DearAOL.com. "If you've got three minutes, call AOL's headquarters and tell them you don't want the email tax directly. Call 1-703 265 1000. Hit "0" to speak with an operator... Just let them know your concern, and thank them for their time." But even non-AOL users could soon be facing the same problems. "Cable and telephone companies that provide Internet service are talking about creating a two-tiered Internet," warns the New York Times, "in which web sites that pay them large fees would get priority over everything else." http://select.nytimes.com/gst/abstract.html?res=F20E1FFB3A5B0C718CDDAC0894DE404482 A web site quickly sprang up called Save the Internet, and today its director raised a question about the future. "[W]ill a handful of telephone and cable companies determine which Web sites you see and which you don't?" The site warns that "AT&T and others want to take away your choices and control what you can do and watch online... "[I]f their high-priced lobbyists get their way in Washington, the Internet as we know it will be gone." http://www.savetheinternet.com/=lie The Times predicts "a disaster for users, who could find their web browsing influenced by whichever sites paid their service provider the most money." The "Save the Internet" site notes that online businesses are already paying $10 billion each year to fund internet access, but "the cable and phone companies want even more -- forcing content providers to pay protection money to get a spot in the fast lane." The only winners would be the biggest companies - like Time-Warner's cable service - since they'd be able to demand that this extra money be extracted from the web business's consumers. The "Save the Internet" site argues that web surfers would have no other choice. "[W]hen the network owners start abusing their control of the pipes, there's nowhere else for consumers to turn. The cable and telephone companies already dominate 98 percent of the broadband market." http://www.savetheinternet.com/=faq A call for "net neutrality" has begun from Senators in both political parties, and in March congressmen received a letter signed by dozens of concerned technology companies, including Google, Yahoo, Microsoft, Amazon, eBay, and TiVo. http://static.publicknowledge.org/pdf/nn-letter-20060301.pdf Over 750,000 concerned web surfers have already signed an online petition. http://action.freepress.net/campaign/savethenet But actions taken this month may determine the future of email and the web - possibly for decades to come. Before it's too late, the "Save the Internet" site is urging users to make their voices heard. http://www.savetheinternet.com/=act Ultimately the way your internet connection is controlled can have very real consequences - as Michael Franks learned from his experience with AOL. "Someone shouldn't be AFRAID of their ISP," he says now, "and the POWER it has on your life." THE LAST LAUGH Last year the AOL employee who sold 92 million email addresses to spammers discovered the judge in his case had been a former AOL user himself. His judge had cancelled his account because it had been receiving too much spam. The judge sentenced him to 15 months in prison. David Cassel More Information - http://www.savetheinternet.com/=faq http://aolwatch.org/list/0105.html#blocks http://blogcritics.org/archives/2006/05/15/141048.php http://www.aolwatch.org/aolwatch28.htm http://alternet.org/blogs/peek/35728/ http://tinyurl.com/qzabp http://www.aolwatch.org/list/0103.html http://www.publicknowledge.org/news/intheknow/itk-20060512#story1 ~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~ Please forward with subscription information. To subscribe to this list, send an e-mail to MAJORDOMO@CLOUD9.NET where your email address appears after the phrase "SUBSCRIBE AOLWATCH" SUBSCRIBE AOLWATCH youremailaddressgoeshere To unsubscribe from the list, send a message to MAJORDOMO@CLOUD9.NET where your email address appears after the phrase UNSUBSCRIBE AOLWATCH ~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~++~
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