America Online Launches 500-Home Broadband Trial with Time Warner Cable

Strategic Insights -

America Online, in partnership with Time Warner Cable, is set to begin a nine-month market trial in Elmira, New York, aiming to demonstrate the benefits of delivering online services over a broadband network. The 500-home trial will commence with the delivery of AOL's service next week, marking the company's latest step in partnering with leading broadband providers. This initiative is part of AOL's goal to provide its members with increased bandwidth, enabling a more robust multimedia online experience.

Key Takeaways:

  • The 500-home broadband trial is a nine-month market trial conducted by America Online in partnership with Time Warner Cable in Elmira, New York.
  • The trial aims to demonstrate the consumer benefits of delivering online services over a broadband network.
  • AOL's goal is to provide its members with increased bandwidth, enabling a more robust multimedia online experience.
  • The trial will offer qualified members the opportunity to participate, with participants charged AOL's standard monthly rate of $9.95 for 5 hours and $2.95 per additional hour.
  • Time Warner will charge separately for access to an entry service package, including a cable modem.
  • America Online's first trial got underway in December 1994 with Viacom Cable in Castro Valley, California.
  • AOL's other cable partners include Comcast Corp., Cablevision Systems Corp., Continental Cablevision, Rogers Cablesystems Ltd., and the JC Sparkman Center in Denver, CO.
  • The trial marks AOL's continued effort to partner with leading broadband providers to deliver on its promise to keep AOL members in the forefront of developments in high-speed and multimedia access.

Statistics:

  • AOL has a 3 million-strong subscriber base.
  • The trial will begin with the delivery of AOL's service next week.
  • AOL's standard monthly rate is $9.95 for 5 hours and $2.95 per additional hour, with Time Warner charging separately for access to an entry service package, including a cable modem.
  • America Online's first trial commenced in December 1994 with Viacom Cable in Castro Valley, California.

Sources:

  • PRNewswire (July 17, 1995)
  • America Online, Inc. official statement (July 17, 1995)