Feeds

AOL scare gives FreeServe punters the jitters

Carry on speculating, we say

  • alert
  • submit to reddit

Remote control for virtualized desktops

Dixons Group shares were the FTSE 100's second worst performer yesterday on (wrong) news that AOL Europe was considering joining the free ISP brigade in the UK. The Daily Mail even says that AOL's entry into the UK free ISP market could cause a price war. Which is astonishing, considering FreeServe is,well, free. AOL would have to pay people to become subscribers to pull off that trick. Yesterday, Dixons shares fell 55p to £11.72. These shares are a way into FreeServe, the company's groundbreaking ISP, set for a £1.9 billion flotation later this year. There are all sorts of reasons to question the valuation placed upon FreeServe - a company with huge market share in the UK -- 31 per cent and 1.5 million subscribers -- but AOL Europe is not one of them. AOL has nine per cent of the UK home Internet subscription market, according to Fletcher Research - which would give it around 500,000 people paying a tenner a month. It has one million subscribers in Germany. This is a lot of money to give away. The company is a prisoner of its own past successes -- it will not torch these paying accounts. The odds on it setting up a non- AOL branded free ISP business successfully (ie: without hacking off its existing customers) is remote. This means relative decline in Europe -- because the company will not grow as fast as its free ISP rivals. The Free ISP pricing model is proving hugely attractive to consumers. That is why AOL is getting into political lobbying -- AOL wants unmetered telecoms in Europe --(unmetered by the way means flat fee, not free access) because that way it can justify its premium-priced subscription service.

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.