NetZero to Offer DSL Broadband

By Ed Oswald | Published November 16, 2006, 4:05 PM

United Online, which owns the NetZero and Juno brands, made its first moves into broadband on Thursday, announcing it would offer DSL service via infrastructure leased from Verizon. The company is one of the last major providers to begin to migrate its business to broadband.

The moves come at a time where consumers are increasingly turning to broadband as a faster -- and in some cases cheaper -- alternative. AOL, which built its business on dialup users, was the first to feel the sting of migration, with EarthLink following soon after.

Many learned the lessons of not having a clear upgrade path from AOL. While that company acted too late in devising a clear exit strategy from dialup and ended up losing nearly a third of its subscriber base as a result. EarthLink and others have been able to prevent such heavy losses.

It now appears as if NetZero, the company that once took pride in the fact that its users never had to pay for Internet service, is following a similar path. However, unlike its low-cost dialup service, NetZero DSL users will actually pay a premium over their Verizon counterparts.

This is due to the fact that United must pay a wholesale price to access Verizon's network, which reports suggest is not far off the rate it charges to its own customers. Under new telecommunications laws, the company is allowed to charge whatever it wants to access its pipes.

Service for the basic DSL tier, called "DSL Saver," would give up to 768Kbps of downstream bandwidth. While it would cost $14.95 USD for the first six months, the same as service with Verizon, after that period the charge would go up to $19.95 USD per month.

The premium tier, called "DSL Pro," offers 1.5Mbps speeds and is available at $19.95 USD per month. However, after six months the price jumps to $29.95 USD per month, which is the same price that Verizon DSL charges for twice the speed.

A six-month commitment is required for either service, United Online said. The company would also provide support for its dialup users that wish to upgrade to the new offering.

"We believe that dial-up continues to be a great solution for many people, but we also want to accommodate those individuals looking for a broadband service that provides the outstanding value that consumers have come to expect from NetZero," chairman and CEO Mark Goldston said.

Comments

View comments by with a score of at least

I get a helluva lot more download speed than this for my $29.95 per month and that also includes the landline telephne service...

Score: 0

|

I can't believe that United Online is still alive. These folks have been the vultures of the ISP industry picking off the few dial-up folks as much as they can. How could they possibly think that offering NetZero DSL at an expense higher than Verizon would make any sense at all. AOL has more credibility than they do in my eyes.

Score: 0

|

EC's Kroes to US senators: Mind your own business on Oracle + Sun

If the AP is accurate, the EU's antitrust chief just told the United States Senate that any merger that takes place in the world is more her affair than theirs.

What does AT&T's 'Mark the Spot' app say about service quality?

That's a question for Betanews readers to answer in comments to this post.

Windows fix for TLS security bug still forthcoming, won't be Tuesday

Anyone looking for a fix for last month's discovery of a potentially serious security hole in TLS and SSL may have to wait until everyone is ready to act together.

Google rolls out real-time search, Near Me Now, extended personalization

Over time, searches from PCs and mobile phones will grow even "more personalized." But what about user privacy and search results that give you "the truth"?

Betanews Podcast: Rupert Murdoch and the buying stuff online problem

We'll have a more difficult time paying for online news if the underlying protocol for online payment has a big gaping hole in it.

Not the first, not the last, technology predictions for 2010

Carmi Levy | Wide Angle Zoom: The real truth is probably that what went around in 2009, will come around to haunt us next year.

Google Goggles: Hands on with the Shazam of the Real World

Google today unveiled Goggles, its visual search lab for Android devices that identifies objects by sight.

Microsoft: Windows 7 Family Pack wasn't 'pulled,' it just sold out

If you hurry, you may still be able to find the last Family Pack upgrade editions hanging around retail store shelves, but probably not so much online.

Clever iPhone game returns after being bumped over a name dispute

The game's simple concept and multitude of platforms and puzzles manage to pull off a retro, 8-bit style that's reminiscent of an old Atari game given a modern makeover.

Intel's marriage of CPU and GPU not ready for prime time

Although there will be an Intel component this month that can compute and plot in parallel, Betanews was told today, it won't be based on Project "Larrabee."

An alternative to Research in Motion's enterprise e-mail? There's an app for that

Good Technology today released an iPhone app compatible with its enterprise e-mail solution.