AOL Asks Users to Cut Back to Help Solve Access Woes
DULLES, Va. — America Online Inc. asked users to scale back their time online to help address the customer complaints and lawsuits spurred in part by its new flat-rate pricing plan.
To resolve these complaints, AOL said it is hiring 600 more customer service employees and will invest an additional $100 million to improve its computer system, boosting to $350 million the amount it will spend through June on equipment that relays its news and entertainment to customers.
The No. 1 online service said Thursday that membership has surpassed 8 million. Its $19.95-a-month plan that offers unlimited online time is attracting a record number of subscribers, it said.
But problems have been plaguing the Dulles-based company. On Wednesday, AOL experienced a partial service outage for nearly four hours, the second outage in six months. Spokeswoman Trisha Primrose said the outage was not related to heavy usage and instead was caused by a defective router, which transfers information on the service’s computer network.
Subscribers have also been frustrated because they have encountered repeated busy signals when they try to dial in. This week, lawsuits were filed in Los Angeles and New York. The Los Angeles suit, filed on behalf of five subscribers, seeks refunds and damages of at least $20 million.
AOL said it is cutting back on marketing, asking customers to moderate their usage and spending more because customer demand and traffic are surpassing expectations. AOL said its average customer now spends about 32 minutes a day online, more than double the time in September.
AOL shares closed at $41.375, up $3.375, on the New York Stock Exchange.
