THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Wednesday, February 12, 1997 TAG: 9702120516
SECTION: BUSINESS PAGE: D6 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: NEW YORK LENGTH: 42 lines
America Online Inc. continues to routinely sign up subscribers - fueling allegations the online service is aggravating network bottlenecks it vowed to unclog.
The company defends the practice, saying it has capped membership at roughly 8 million and uses signups to offset cancellations. Although he declined to provide specific numbers, AOL Chief Executive Steve Case said Tuesday that more people have been canceling since the recent troubles escalated.
But some critics wonder why America Online doesn't take the extra step to ease demand on its network, which has been swamped with customers who paid $19.95 a month for unlimited online time but frequently get nothing but busy signals. Under pressure from attorneys general from around the country, AOL agreed two weeks ago to give frustrated customers refunds and credits as well as make it easier to drop the service.
Last week, a judge in Seattle temporarily barred America Online from signing customers in Washington state until it upgrades its system. The restraining order, spurred by a class-action lawsuit against AOL, was overturned by another judge on Monday.
``By continuing to take in other customers' money, they are exacerbating the damage they are doing to their current customers,'' said Seattle lawyer Steve Berman, whose case is among roughly 20 class-action suits around the nation.
While AOL told states' attorneys general it would stop soliciting customers this month by suspending its advertising campaign, it did not agree to refrain from signing up anyone who inquires. Many people say they continue to receive company promotions in the mail.
Case said that the AOL diskettes arriving in peoples' homes this month were just leftovers from a marketing blitz the company has suspended.
``Most of the things we have in the pipeline would be problematic to unwind,'' Case said. As far as refraining from adding any new customers for now, he added: ``We don't think completely shutting down to new customers is really fair.''