Suffering Internet giant launches its broadband telephone service with a hefty $39.99 monthly rate, but throws in a $10 discount for six months to new customers.
America Online (AOL) will officially launch its Voice over IP service --- called "AOL Internet Phone Service" --- Thursday, the company announced in a press statement released late Wednesday night.
The service, to be bundled with access to AOL's internet content and including unlimited calling to the U.S. and Canada, is being offered in 40 U.S. markets and will carry a price of $39.99 per month, significantly higher than most existing VoIP [1] services.
During the first six months, new customers will be offered a $10 discount.
But, even reduced to $29.99, the AOL price will be higher than services such as BroadVoice [2], Packet8 [3], VoicePulse [4] and Vonage [5], each of which has a significant head start on the Time Warner-owned internet service giant that has fallen on difficult times of late.
Currently, AOL has about 22.6 million internet customers, having lost about 4.5 million over the past two years.
Existing AOL customers will pay between $13.99 to $29.99 per month to add the company's VoIP service, though those rates will increase by $5.00 in three months.
For a limited time, the company will give current AOL members who sign up a free wireless home network base station.
AOL, like Packet8, will offer enhanced 911 capabilities that automatically delivers a caller's address to emergency dispatchers during an emergency call.
Packet8's e911 service is offered as a $1.50 per month add-on to the company's popular $19.95 U.S. unlimited calling plan.
But like Packet8's e911 offering, AOL's will not work if the customer installs the service at a location unknown to the company.