AOL ponders free service

A switch to free services would allow AOL to generate advertising revenues

AOL is considering the launch of a free version of its service, including email, to customers of competing internet providers.

AOL rose to fame during the early days of the internet as a dial-up provider. The company offers access to a fenced-off version of the internet that promises to safeguard consumers from online perils such as viruses, porn and phishing websites.

But with the rise of broadband and the increased education of online consumers, AOL saw its membership fall. The provider's service is often referred to as "the internet on training wheels".

AOL has unsuccessfully marketed a service for broadband subscribers that provides access to its version of the net including premium content.

A switch to free services would allow AOL to move from a subscription-based business to relying on advertising revenues. It would also enable the provider to cut back its marketing and support budgets.