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AOL to Begin Pushing Subscriber Growth

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Bloomberg News

America Online Inc., after halting customer growth at 8 million people in January because of problems with access to the service, said it now plans to add subscribers. In a monthly letter to subscribers, AOL Chairman and Chief Executive Steve Case said the Dulles, Va.-based company will begin marketing its service again. The company stopped seeking to add customers in February after a $19.95 unlimited-access rate in December brought so many new subscribers that the network slowed down. “We will begin marketing on a limited basis, slowly ramping up over time so we can measure the impact of each incremental increase in marketing,” Case said. AOL has underestimated demand in the past, particularly when the flat-rate fee was introduced. Customer complaints led to class-action suits and intervention by states’ attorneys general offices. In January, AOL settled with 45 attorneys general, agreeing to customer refunds for December and January and halting marketing in February. Last week, the company settled a class-action suit, extending for two more months the refunds it will pay. AOL shares lost 25 cents to close at $45.125 on the New York Stock Exchange.

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