AOL starts rolling out 'Net phone service

America Online (AOL) on Thursday began the nationwide rollout of an Internet phone service for subscribers to its Internet service.

AOL began introducing the AOL Internet Phone Service to more than 40 initial markets around the U.S., including New York, Chicago, Los Angeles, Dallas-Fort Worth, Las Vegas, Washington, D.C., and the San Francisco Bay area. It will expand the service to other cities over the coming months, according to a company statement.

Subscribers to the VOIP (voice over Internet Protocol) service will get an adapter into which they can plug a traditional touch-tone phone and a broadband Internet connection. In addition to a variety of pricing plans for local, long-distance and international calling, the service comes with standard call waiting, caller ID and unified voice mail, e-mail and instant messaging, according to AOL. A voice portal allows users to receive their AOL e-mail via phone with an electronic voice reading out the messages, said spokeswoman Cindy Harvey. Enhanced 911 (E911) emergency calling is enabled on the service in all of the 40 initial markets, according to AOL.

VOIP can cut the cost of phone calls by converting them into IP packets and putting them on a data network, while also making possible new types of user interfaces and services. Startups, established phone companies and cable operators all are jumping into consumer VOIP with a variety of approaches. AOL has integrated its VOIP service with its existing Internet offering, allowing users to combine their standard AOL contact list for e-mail and instant messaging with a phone contact list. That list can indicate in real time whether a contact is reachable via instant message as well as providing a phone number that can be dialed with a mouse click, Harvey said.

AOL is offering several pricing plans for the service, each with discounted introductory rates:

-- A Local Plan with unlimited local and regional calls for $13.99 per month for the first three months, plus $0.04 per minute for long-distance calls in the U.S. and Canada. After the first three months, the monthly rate will go up to $18.99.

-- An Unlimited Calling Plan including unlimited local and long-distance calls in the U.S. and Canada for an initial price of $24.99 per month for the first three months and $29.99 thereafter.

-- A Global Calling Plan with unlimited local and long-distance calling in the U.S. and Canada plus low international rates, priced at $29.99 per month for the first three months and $34.99 per month thereafter.

-- A special rate for new AOL customers, with unlimited local and long-distance calling in the U.S. and Canada plus the AOL Internet service over broadband for $29.99 per month for the first six months. After that, the monthly rate will go up to $39.99.

REFERENCES:
AOL to launch VOIP within a month, Mar. 8, 2005