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AOL: Drop Dial-Up, Get Broadband

By Ed Oswald, BetaNews

February 21, 2006, 7:02 PM

AOL said Tuesday that it would raise the price of its dial-up offering by $2 in an effort to encourage dial-up subscribers to sign up for broadband services provided by the company. Both its traditional service and its new broadband offering will now be priced at $25.90 USD per month.

The new pricing is set to take effect March 9. Not affected would be the company's 10-hour limited-use dialup and bring-your-own access plan, both priced at $14.95 USD monthly, and its annual prepaid plan, which retails for $239.40 with the option for a partial refund if the customer cancels early.

In recent weeks, AOL partnered with the four remaining Baby Bell companies -- BellSouth, Verizon, AT&T and Qwest -- to bundle their high-speed offerings with AOL service. It also joined forces with two cable operators: Time Warner Cable and Charter Communications. Each company will charge $25.90 USD per month, except for BellSouth, which will charge $29.90 USD.

According to AOL, these carriers can serve a majority of its current subscribers.

AOL sees these broadband deals as crucial to the future success of the company with more and more dial-up customers cycling off the service. The company has also made an effort to open more of its content to the general public, which it subsidizes through selling advertising.

The company has suffered from a loss of customers; it counted 19.5 million U.S. subscribers at the end of last year. This is down some 30 percent from its peak of 26.7 million subscribers in late 2002. AOL says three-quarters of its members are still on dial-up.

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By VeteranWW2

edited May 29, 2006 - 11:10 PM

Have searched the AOL site looking for Dial-Up
connection PLUS any security features that might
be included but found zip. Can you let me know the answer. I now get Dial-up ISP plus ALL
the security needed: virus protection, firewall,
pop-up and content filters, etc..all for $13.00
per month via Credit Card or Bank EFT. What
is the comparable from AOL?
NEVER MIND - I finally found it at AOL site.

Score: 0

By fdr

edited Feb 22, 2006 - 6:15 PM

sbc ATS&T is offering dsl for $12.99 you can get comcast at deal sites for $19.99

Score: 0

By ladylust

posted Feb 22, 2006 - 7:26 PM

AT&T and such are way cheaper but people want there email account and all those really color screens that AOL gives you. If you had AOL for 6 years you are trapped because you need your email address. When I install wireless networks in homes and offices thats the first thing they ask me "If i leave AOL do i get to keep my email address".

Score: 0

By NoahFexPayton

edited Feb 22, 2006 - 3:01 PM

Didn't AOL claim that they wouldn't raise prices in their commercials?

Score: 0

By Matrix3000k

posted Feb 22, 2006 - 4:59 PM

They sure did. In their commerical they said dial up and broadband for 25.90

Score: 0

By TomA102210

posted Feb 22, 2006 - 4:30 PM

No, they didn't. Bush 1 said that about taxes though when he said something like "read my lips".

Score: 0

By grooveharder

edited Feb 22, 2006 - 2:48 PM

All these comments about 'people in the sticks' are totally patronising. I wouldn't consider myself 'poor' or living in a 'bad' neighbourhood or anything like that, but yes, my family can't afford broadband. Nothing to do with where I live or how much my family earns

And broadband companies are using totally the wrong way to get more customers (well, here in England anyway) - they keep the price (which is too expensive for a large proportion of the population) the same, but increase the speed of the connection to attract more customers. Now, surely to attract new customers companies should keep the speed of their basic package the same - say 512k (with unlimited bandwidth of course :) ) - but lower the price. I think many more people would pay say £10 a month for a 512k connection than £20 a month for a 2 meg connection; 512k is more than fast enough for most people.

Going back to AOL, yes, to encourage people to move from dialup to broadband they should even up the prices of the two. But for god's sake lower the price of the broadband instead of raising the price of dialup, lest you will lose your customers.
[End of rant]

Score: 0

By DeKoquonut

posted Feb 22, 2006 - 10:43 PM

"...my family can't afford broadband. Nothing to do with...how much my family earns."

I think what you can afford just MIGHT have something to do with your income. Not ripping on your income, just squinting at your logic.

Score: 0

By acidburn2004

edited Feb 22, 2006 - 9:32 PM

who care's if aol(amatures online)loses customers.the internet would be a much better place if aol was to die tomorrow. they are the biggest cuase of the problems we have on the net now ....they send out spam by the millions just like they spam your postal mail with there stupid disks(frisbee's) and the have the gaul to advertise that they have software that will block the very thing that they produce in the first place...aol is nothing short of a virus..and even the aol software itself will infect evey corner of your computer...so i would love to see aol fall on its hypicritical face.

Score: 0

By TomA102210

posted Feb 23, 2006 - 11:28 AM

"aol is nothing short of a virus..and even the aol software itself will infect evey corner of your computer...so i would love to see aol fall on its hypicritical face."
---------------------------------------------
My, my, what a hoot you are. Did you use your virus software and it got rid of AOL for you? "send out spam" you say? It's more like they forward spam that others send, but it ends up in your spam folder. I see far more spam on Outlook than I ever see on AOL.
In the unlikely event that AOL were to die tomorrow I'm sure that we loyal AOL, 20 million subscribers would survive. However that is not even a remote possibility. Take your Zantac and move on.

Score: 0

By acidburn2004

posted Feb 23, 2006 - 10:30 PM

"It's more like they forward spam that others send"
-----------
lmao....now thats a good selling point.
JOIN AOL AND WE WILL SEND YOU ALL THE SPAM THAT GETS SENT TO US,sounds about right....lmao...that would only come from a devoted subscriber.

Score: 0

By jordenpro

edited Feb 22, 2006 - 12:05 PM

Honestly, I believe AOL to be the best for people like my aunt and uncles. It offers alot right off the gate, gives them a false sense of security, latest news, etc... AOL helps people that don't know cr@p about computers a chance to experience the internet. Some people just want simple, and that's what it is. So giving the dinosuars that still use dialup a 2.00 a month nudge, good...Atleast the dialup novice can move to highspeed. AOL guides newblets into newbies and in the dialup days, you were there yourself.

Personally:
I still use AOL because I've been with them from day one. So even though I've moved around a lot over the years, my friends can still reach my on my original AOL account, and yes I could just send everyone an email advising of my new email, however as most of you, people change ISP's, emails, so it's nice to know my friends know how to reach me. Do I use the AOL client? No I dont, I use thunderbird and check my mail from there.

jorden @ aol . com

Score: 0

By PC_Tool

posted Feb 22, 2006 - 2:34 PM

Probably the only reason I've heard to stick with AOL that makes any sense...

Early users simply didn't have the option of "webmail" or permenant email addressess regardless of ISP.

I can understand this. It's just the "new" AOL users I don't get. Modern Operating systems makes internet use as easy as AOL was back in the day now anyway, so what's the point?

Score: 0

By TomA102210

posted Feb 23, 2006 - 11:32 AM

"I can understand this. It's just the "new" AOL users I don't get. Modern Operating systems makes internet use as easy as AOL was back in the day now anyway, so what's the point?"
----------------------------------------------
I guess you're just stuck, Tool and probably never will get the point.

Score: 0

By RumbleGeek

posted Feb 22, 2006 - 7:43 PM

Anyone who has been on AOL since time memorial may feel that that their email address is in so many hands they can't possibly change it. There are several email services that let you import all of your information and notify all of your contacts with the new email address. I recently got Gmail from Google as a supplemental email carrier and I'm pretty impressed with it. Although, I doubt the average AOL user would be reading these posts on betanews.

Score: 0

By jordenpro

edited Feb 23, 2006 - 11:27 AM

Please read the full comment before replying to my reasons.

Yes, I can easily switch email address's, but I stated that people change emails address's often, so the address I have for newblet004@hotmail.com, might have changed to newblet@gmail.com. If this happened and I switched emails, well now there is a problem. So my point is I like the name I have on AOL, its very simple for friends to contact me and on all the forums I use I like to keep the line of communication open.

For most people, switching email addy's is not a problem. My case, it's worth the 14.95 a month to keep in touch.

Please understand, I don't use AOL as my ISP, and I don't use them as my main email. I just don't mind paying the monthly fee.

Score: 0

By Matrix3000k

posted Feb 22, 2006 - 5:06 PM

PC_Tool advanced users like yourself and I don't need AOL to use the internet. But AOL has a user friendly software that any person can use. Parents and grandpartens who are new to the computer world don't even know how to turn a computer on but they sure learn how to use AOL and they love it. Trust me i used to work as a help desk tech support for a company and the calls I would take every day were out of this world but they do exsists. A company like AOL now can offer the public a high speed connection and AOL subcripition for 25.90!!! now thats a steel. I mean I pay about 60 bucks for just cable internet and that is insane but I choose not to go back to dial up. The price has nothing to do it but it has to do with marketing and business and not money.

Score: 0

By PC_Tool

posted Feb 23, 2006 - 9:15 AM

"But AOL has a user friendly software that any person can use."

Getting on the internet with Windows now is as easy as AOL ever was. That argument no longer flies. It's just a perception.

Score: 0

By acidburn2004

posted Feb 22, 2006 - 10:15 PM

WoW!!...what a ripoff MATRIX3000..("I mean I pay about 60 bucks for just cable internet and that is insane")that is insane..i pay 39.00 a mo. for 3meg cable service.

Score: 0

By RumbleGeek

posted Feb 23, 2006 - 8:24 AM

I get 20meg for that price.

Score: 0

By PC_Tool

posted Feb 22, 2006 - 11:56 AM

Sadly, there are many folks out there, including my parents, who are just fine with Dial-up.

If they don't need the speed, why pay more for it?

Now they get nicked again for what reason? To nudge them into spending more money on crap they don't need or want?

Never liked AOL. This just makes it that much easier. I'd love to see TomA102210 (our resident AOL fanboy) defend this one.

Score: 0

By TomA102210

posted Feb 22, 2006 - 4:36 PM

Just continue to try and fill all the holes in the dyke to keep the water from getting through. That's how little good you're going to do. I've made it my goal to support a service which I like very much. Obviously you've made it your goal to switch from AOL for whatever reason. I really don't have to defend anything but I do enjoy seeing you try to plug the holes; you and all the other AOL naysayers! Makes you a walking advertisement for AOL.

Score: 0

By PC_Tool

posted Feb 23, 2006 - 9:16 AM

"Makes you a walking advertisement for AOL."

Cute.

Clearly your concept of reality is vastly different from the other 98% of the worlds population. Must be fun!

Score: 0

By TomA102210

posted Feb 23, 2006 - 11:37 AM

"Clearly your concept of reality is vastly different from the other 98% of the worlds population. Must be fun!"
---------------------------------------------
When that 98% of that population is in your world it does make it fun. You need to get out more, Tool.

Score: 0

By Das mod

posted Feb 22, 2006 - 11:13 AM

who cares...
i dont even use AOL .... they can raise their prices all they want :P ....

Score: 0

By zxocuteboy

posted Feb 22, 2006 - 10:36 AM

AOL Sucks...

Score: 0

By orizng

posted Feb 22, 2006 - 10:27 AM

AOL is dying, coz it is stupid.

Score: 0

By Matrix3000k

posted Feb 22, 2006 - 1:29 AM

Everyone is complaining to the increase in price. AOL is not the only service raising their prices but others companies as well. Do you go and call the gas companies every time gas prices go up???? Either you use the service or not. So stop the bit#%in here and deal with it. If you don't want to use AOL and use netzero, people pc, or whatever go right ahead. At least a company like AOL is working towards growing again. For those who are compalining you all sound like account abusers where aol stopped giving you free months of service and finally canceled out your account. Get a life!!!

Score: 0

By athome

posted Feb 22, 2006 - 9:32 AM

You are correct in that everyone raises their prices, but they don't do it for the sole reason to get people to use broadband. I think this is a bit outrageous. Only that there are many customers out there that use AOL, and there isn't a broadband service in their area to use. Therefore, they are hurting these customers in paying more for less.

I am curious to the fact that Charter, AT&T, Comcast, SBC are allowing these services to be on their networks and they are undercutting some of them to use the broadband service they are providing. Why are they allowing this? Doesn't seem right, or that there are going to be some hidden charges(hookup, use, and installation charges). SBC and TDS, in my area, are offering broadband at a considerably lower price already than the $25.95.

I have moved many(I do mean many) customers off AOL and onto broadband. The one reason why people stayed with AOL is because they did not want to change their email address. They had to do a lot of work to move their address books, lists, favorites, etc to even begin to feel comfortable on the other network. People that have been with them for years and have a lot of information.

Until recently, AOL did not even give these people help. Now they offer them to keep everything even though they leave. I give them credit for this.

In my opion, they need to dump the browser and just provide email.

Score: 0

By tigger4046

posted Feb 22, 2006 - 11:59 AM

Actually in answer to your question "AtHome", AOL provides it's members and soon to be non-aol members to download an application called "Aol Suite" that has standalone products such as a browser known as AOL Explorer, AIM Triton, Mail, and also includes many new features being added shortly. And to make more sense for the move, AOL feels to help make the move from dialup. That for the same price of AOL you get the broadband with ulimitted AOL for the same price. I'll leave this conversation with one thing on your mind. Using dialup and or Broadband how do you use the internet? I know with my AOL I watch free live concerts on demand, listen to AOL Radio commericial free with 117 XM Radio Stations and get the news when i want it. And soon, I will be able to watch my favorite TV shows on demand FREE as well.

Rather than beliving what i've said.. I dare you just peak at aol.com and see what the fuss is really all about.

To learn more that AOL is working on over the horizon, view beta.aol.com

Score: 0

By TomA102210

posted Feb 22, 2006 - 10:37 AM

Until recently, AOL did not even give these people help. Now they offer them to keep everything even though they leave. I give them credit for this.
----------------------------------------------
That's crap and you know that it is. The fact that you say that you "have moved many" customers off AOL" tells me and others that you are quite prejudiced against a very successful company. AOL helps and always has and they do a pretty darned good job of it.

Score: 0

By PC_Tool

posted Feb 22, 2006 - 2:31 PM

Hi, Tom!

How's it going in AOL fanboy-land? Haven't seen ya in a while.

Score: 0

By TomA102210

posted Feb 22, 2006 - 4:39 PM

That's right, Tool, I'm a fan of AOL and so are you without even reazling it. Just keep using the words "AOL" in posts every once in a while so we get more attention drawn to a very good ISP. I Love it.

Score: 0

By PC_Tool

posted Feb 23, 2006 - 9:17 AM

Yeah, big fan. Should I perhaps s AOhell, instead?

Nah, too cheesy.

So, what exactly is the logic behind your "I'm a fan too" argument? Please tell me you're not an SEO.

Score: 0

By acidburn2004

posted Feb 22, 2006 - 10:01 PM

LMAO @TomA102210...(A VERY GOOD ISP)....LMAO!!!

Score: 0

By gawd21

posted Feb 22, 2006 - 11:53 AM

AOL is out for one thing and one thing only, to get as much of your money as they can. They do not help, they have been sued more than MS, they will steal your money from your bank account or credit cards, and to top it all off they make it next too impossible to cancel the slow and inferior service that they offer.

Score: 0

By bobthegoat2001

posted Feb 22, 2006 - 1:00 AM

I don't see why people still use AOL anyway.

My parents use ISP.com (which I found out about). Which it's only $8.95 a month and about 3 times cheaper than AOL and the thing I like about it is that you don't need any software installed to use it [although there is optional software that you can use], all you need is the phone number and your login infomation. You just use Windows dialer.[/advertisment]

Score: 0

By athome

posted Feb 22, 2006 - 9:47 AM

Exactly! This is what I try to convey to all my customers. You don't need the software. It will only cause problems. I even suggest that the customer doesn't use the email provided by the ISP only because they are then free to move between ISPs as they see fit and willing to pay, but will always have their email if they use hotmail, yahoo, google(blah *frown*), etc.

Using a browser provided by an ISP is only putting a huge hole in their security. This is like hiring snakes to guard a turtle's nest. ISPs including AOL are out for themselves(so it seems these days).

IMO

Score: 0

By RumbleGeek

posted Feb 22, 2006 - 12:22 AM

I occasionally run into someone who still has AOL...it still amazes me. I live in an area where internet broadband is offered by my cable company, so no other IP is necessary. Why would anyone need AOL broadband?

Score: 0

By athome

edited Feb 22, 2006 - 10:26 AM

Because there are still many areas where broadband is not offered, and there isn't even a timeline or schedule to have it done in the near future. This also gives way to the fact that why would they go out and buy a HDTV if they cannot even get the signal in their area. Only local channels for HD! How can you justify the expense of 3,000 - 7,000 to watch 3 channels?

Edit:
These computers are also very outdated with regard to updates, with no regard to the OS. Whether 9x, Me, or XP, the systems are in need of several security updates with is increasingly difficult(the update) over a dialup connection.

AOL does have a place, but to pay what they are now asking is too much.

Score: 0

By PC_Tool

posted Feb 22, 2006 - 2:29 PM

Too many assumption there to even know where to begin...

You may get 3 channels OTA, we get 8. Count all the channels you watch regularly...if it's more than that, you need to get out more.

Not all dial-up users are using outdated computers or operating systems. Updates are still *very* easy to retrieve overnight.

AOL will never be my choice of ISP, but dial-up is not just for backwater hicks and country bumpkins. For anyone that uses the internet for *only* email, it's often a far cheaper and less complicated option.

Score: 0

By surfbum4fun

posted Feb 21, 2006 - 10:17 PM

twenty-six dollars for dail-up?

Score: 0

By drumcat

posted Feb 21, 2006 - 10:16 PM

AOL = Americans on landlines

Score: 0

By GSMiller

posted Feb 21, 2006 - 9:52 PM

Nope....None of those broadbrand providers are available in my area and I know ALOT of people with AOL dial-up! The best thing I ever done was cancel my AOL account.

Score: 0

By gawd21

posted Feb 22, 2006 - 11:41 AM

Check your bill to be sure that you truly were canceled.

Score: 0

By drumcat

posted Feb 21, 2006 - 10:15 PM

Well, having AOL is laughable -- at least you fixed your errant ways. ;)

Score: 0

By horsecharles

posted Feb 21, 2006 - 9:06 PM

I agree with most here, barring entrance by raising subscription rates, which pale in comparison to the potential ad revenue & multimedia purchases from each potential member, just makes no sense.
Aol should hook with Google to offer free unlimited dialup: the ad revenue stream would be incredible, and they'd be ready to piggyback on Google wherever/whenever it offers broadband. And together they could become a multimedia store behemoth too.

Score: 0

By bourgeoisdude

posted Feb 22, 2006 - 10:40 AM

"Aol should hook with Google to offer free unlimited dialup: the ad revenue stream would be incredible, and they'd be ready to piggyback on Google wherever/whenever it offers broadband."

I have yet to see a successful implementation of "free" Internet dialup. Biggest problem? Ads take major bandwidth, making it harder to deploy in the sticks because you'd need 5 phone numbers for internet access if you were out in Cut N' Shoot town, or whatever. Too expensive to maintain the dialup servers as well, not enough network admins want to be on call to support servers on Bobs Road in Glasgow, Montana.

Score: 0

By horsecharles

edited Feb 22, 2006 - 6:33 PM

BD, What you say makes sense-- though i wonder how Netzero manages(or mismanages, lol)-- I'd imagine Google & AOL Proxies could come in handy then...

Score: 0

By gawd21

posted Feb 21, 2006 - 8:26 PM

While the rest of the world drops the price, AOL raises it. Classic.

Score: 0

By klingon379

posted Feb 22, 2006 - 12:55 AM

Why would anyone want dialup? If you can't get DSL or cable due to your location you can probably get broadband service through your cellular phone provider.

Gradually eliminating dialup is no different than the US government's plan to eventually eliminate analog TV in favor of superior digital TV.

Score: 0

By PC_Tool

posted Feb 22, 2006 - 2:15 PM

Big difference!!

$$$

We don't pay for OTA television. We *do* pay for POTS internet.

The two are nothing alike.

Score: 0

By gawd21

edited Feb 22, 2006 - 11:33 AM

I would never use AOL even if it were free for life. There are a lot of places that one may only be able to use dial-up.

"eliminate analog TV in favor of superior digital TV." Sorry to break this to you, but digital sucks. I have never seen a show last for more than an hour where the signal didn't get blocks in it at least one time. That isn't do to where I live every person I have ever talked to that has digital, despite where they live, has the same problem.

Score: 0

By klingon379

posted Feb 22, 2006 - 2:16 PM

I watch Comcast high definition digital cable on my Dell 19-inch widescreen LCD TV and have a crystal clear picture all the time. With analog cable I got shadows and distorted audio on a regular basis with many channels. These video and audio problems are completely gone on all digital standard definition and high definition programming.

Score: 0

By bourgeoisdude

edited Feb 22, 2006 - 10:29 AM

"Why would anyone want dialup? If you can't get DSL or cable due to your location you can probably get broadband service through your cellular phone provider."

It is apparent that you don't live in one of these areas. Most of them have *NO* cell phone coverage. Granted some do--but the only options for broadband currently for those folks are:

1. Satelite. Muy grande $$$
2. ISDN. Costs megabucks upfront and costs more a month than cable would, yet base is only total of 128kbps (64kbps up and 64kbps down)--sure it beats dialup, it's guaranteed bandwidth--but still only gets to download (if full duplex) at a mere 16KB/sec (remember kb != KB).
3. T1 line, which is nothing other than multiple ISDN lines. Again costs probably $100 to $200 a month, and initial costs could be over $1,000 to start. Only 1.544kbps total bandwidth.

Obviously, none of those options are realistic for folks living in the sticks. Satelite Internet maybe--but if it rains then no internet for you! Why would someone want dialup? NOBODY does, but some really don't have any choice.

Score: 0

By PC_Tool

posted Feb 22, 2006 - 2:19 PM

"NOBODY does, but some really don't have any choice."

Wrong.

I'd hazard to guess my parents aren't the only folks living in the city who are sitll using dial-up simply because it does what they want it to do. They have the option of using cable, dsl, satellite... they choose not to. They pay $10 a month, they get their email, they're happy with it.

If given the option to go DSL or cable at the same cost, they'd probably say no due to the simple fact that they wouldn't want the hassle of adding a NIC to their PC and going through the set-up.

Score: 0

By AlanRivaldo

posted Feb 22, 2006 - 11:29 AM

Yes, they have a choice. They made a choice of living in the sticks, and this is one of the ways that they pay for making that decision.

Score: 0

By gawd21

posted Feb 22, 2006 - 11:36 AM

That is one of the stupidest posts.

Score: 0

By PC_Tool

posted Feb 22, 2006 - 2:10 PM

Yours?

Agreed.

But the one above it is even worse. ;)

Score: 0

By captzerf

posted Feb 22, 2006 - 9:25 AM

You can not even compare the two situations. The government is moving to digital to free up spectrum for newer technology including emergency services. They are even paying for converters for people whose tv's will be out of date, I'll be AOL doesn't offer a NIC or USB card to everyone who needs it in order to hook their computer up to hi speed.

Score: 0

By athome

posted Feb 22, 2006 - 10:30 AM

That will be a lot of win98 computers to update. The increase on the system will cause so many problems. Not even to mention the adware/spyware concerns.

AOL will be causing a lot of these users to buy new computers which could be a plus, but really just starting the AOL cycle over again.

Score: 0

By klingon379

posted Feb 23, 2006 - 4:13 AM

If you're using Windows 98 then it's very likely your computer is seriously obsolete and you should probably upgrade anyways. DOS went away a very long time ago. Besides, all new computers include an NIC. It's usually integrated on the motherboard.

Many newer motherboards won't even run Windows 98. Motherboards that use nVidia's nForce 3 Pro 150 or later chipset are completely incompatible with Windows 98.

Score: 0

By Jaypup

posted Feb 21, 2006 - 7:39 PM

What about customers in the sticks who cannot get broadband... Aol totally sucks, Id never return to them. I agree with bourgeoisdude.

Score: 0

By zee7

posted Feb 21, 2006 - 7:34 PM

Better idea, AOL customers: drop AOL altogether.

Score: 0

By bourgeoisdude

posted Feb 21, 2006 - 7:26 PM

All AOL jokes aside, this is a stupid decision on AOL's part. The reason most people use aol dialup is because they cannot use DSL or cable due to their remote area. This way AOL just kills dial-up user base and sends them to Netzero and gang...

Score: 0

By athome

posted Feb 22, 2006 - 10:31 AM

And you win the prize!

Score: 0

By psycros

posted Feb 21, 2006 - 9:18 PM

Couldn't agree more. I am one of the 20-25% of Americans on the 'last mile' that have NO broadband options other than satellite (insert your own joke here, LOL!!) The ONE thing that could save AOL would be if they became evangelists for broadband over powerline. But I guess one out of five Americans isn't enough of a potential market. Good riddance, losers!

Score: 0

By rpavl

posted Feb 21, 2006 - 7:29 PM

Im glad this is a stupid decision...one step closer to oblivion.

Score: 0