• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
Telecommunications

For AOL dial-up subscribers, it’s life in the slow lane

By
Verne Kopytoff
Verne Kopytoff
Senior Editor, Tech
Down Arrow Button Icon
By
Verne Kopytoff
Verne Kopytoff
Senior Editor, Tech
Down Arrow Button Icon
December 11, 2014, 11:26 AM ET
AOL AIM logo
<h1>Netscape</h1> AOL got itself a fading web browser and has-been website when it acquired Netscape Communications in 1999 for nearly $10 billion. What were AOL executives thinking? It's not exactly clear other than a failed effort to remake Netscape into a web portal and some vague comments about e-commerce. AOL was eventually able to wring some money out of <a href="http://money.cnn.com/quote/quote.html?symb=MSFT&amp;source=story_quote_link" title="">Microsoft</a> for antitrust violations during the browser war era and some more last year for Netscape's patents. But the acquisition remains a big loser while Netscape, the browser, is long dead.Photo: Philipp Guelland/AFP/Getty Images

As an AOL dial-up subscriber, Phyllis Brock can’t watch YouTube because her Internet connection is too slow. Streaming movies on Netflix is such a farfetched idea that she’s never bothered to try.

“A few years ago, I tried to watch the ’12 Days of Christmas’ on YouTube,” said Brock, referring to the classic holiday song. “But I never got beyond that first partridge in a pear tree.”

So goes life in the slow-lane for the remaining AOL dial-up die-hards. Despite the widespread adoption of high-speed Internet connections, AOL (AOL) still has 2.3 million dial-up customers. It’s an odd counterpoint to the hyper-connected world in which most Americans live. How can so many people still be so far behind in an era of flashy Web sites, shooter games and more streaming entertainment than anyone could possibly digest in a lifetime?

Last year, two percent of Americans used dial-up at home, according to the Pew Research Internet Project. In contrast, 70% had broadband.

The reasons for the divide are many. Some people are simply stuck in their ways or forgot to cancel their subscriptions. Others wrongly think they’ll lose access to their email accounts if they switch to broadband. Meanwhile, some people can’t afford the extra cost of a high-speed connection.

In fact, Brock, a retired French teacher in rural Tennessee, 55 miles from Knoxville, has few alternatives to dial-up. Like many people who live in remote areas, she has no access to broadband at home.

Around 19 million Americans lack high-speed connections, according to the Federal Communications Commission. In rural areas, nearly one-fourth of the population—14.5 million people—lack access.

Even today, the company once known as America Online makes the vast majority of its profits from dial-up and services packaged with it. Oddly enough, the company that got its start as a dial-up business during the Internet’s early day—and once had as many as 35 million subscribers—still depends on it.

In its latest fiscal quarter, for example, the company took in $139 million in profits from the division that includes dial-up compared with just $17 million from its online publishing business. Meanwhile, its corporate division and ad sales for third-party websites lost a combined $34 million in the quarter.

In the latest quarter, AOL’s made an average of $21.35 per subscriber per month. Those customers have been paying for an average of 14.1 years, the company said.

In effect, dial-up is funding AOL’s operations while CEO Tim Armstrong races to remake the business into one that is largely supported by online advertising. However, the clock is ticking because the dial-up business is steadily shrinking.

AOL has managed to slow the decline by pushing more add-on services like anti-virus software and tech support to its dial-up customers. Eventually, Armstrong hopes that subscription revenue will reverse course and start growing again from the sale of these bundled services.

“I would sure hope that we get to the point where subscriptions are growing again and that’s our goal,” Armstrong said during a conference call with investors in August.

For Brock, going online through her dial-up connection is an exercise in frustration. She recently had to give up on a search for the lyrics to the song “Let It Go” from the film Frozen because she was unable to get any page to load.

“It drives me up the wall,” Brock said. “This morning I needed to send an e-mail and I suppose it took me 10 or 15 minutes to get on the Internet. Each time I tried to get e-mail, it would say I’m not connected. But I was.”

Brock’s dial-up speed seems to fluctuate based on the time of day, making her think strategically about when to log on. During working hours, speeds slow to a crawl, so she tends to go online during early morning and evening hours.

At one point, Brock enlisted a local computer technician to try to trouble shoot any problems that might explain her slow connection, but he ultimately concluded that there wasn’t anything he could do. Grandchildren who’ve tried to help haven’t had any luck either.

Brock got her first computer and a dial-up connection through Netscape around 20 years ago. AOL bought Netscape a few years later, but didn’t get around to switching the brand name on her dial-up service until a few months ago.

A potential remedy for Brock would be to switch to satellite Internet service. She says she’s considered it. But it’s unclear whether a satellite connection would work. Getting a signal usually requires pointing a satellite dish at the southern horizon, which may be difficult to do because her home—near the Appalachian Mountains—is surrounded by hilly “knobs,” as she put it.

“It is frustrating to me,” Brock said. “People find it incredible that I’m putting up with it.”

About the Author
By Verne KopytoffSenior Editor, Tech
LinkedIn iconTwitter icon

Verne Kopytoff is a senior editor at Fortune overseeing trends in the tech industry. 

See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

A 45,000-person labor strike at Samsung’s memory chip plants could throw a wrench into the AI boom
EconomySamsung
A 45,000-person labor strike at Samsung’s memory chip plants could throw a wrench into the AI boom
By Catherina GioinoMay 17, 2026
42 minutes ago
Kevin Warsh, chairman of the US Federal Reserve nominee for US President Donald Trump, during a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing in Washington, DC, US, on Tuesday, April 21, 2026.
BankingKevin Warsh
Wall Street is keeping a close eye on Kevin Warsh at the Fed. These are the red (and green) flags they’re watching for
By Eleanor PringleMay 17, 2026
2 hours ago
New NRG Energy CEO leans into growth with ‘bring your own power’ for the AI boom and affordability with ‘virtual power plants’
Energypower
New NRG Energy CEO leans into growth with ‘bring your own power’ for the AI boom and affordability with ‘virtual power plants’
By Jordan BlumMay 17, 2026
3 hours ago
U.S. allows Russia oil sales waiver to expire despite tight market
EnergyOil
U.S. allows Russia oil sales waiver to expire despite tight market
By Jennifer A. Dlouhy and BloombergMay 16, 2026
10 hours ago
AI poised to tilt job market leverage toward older workers
AIHiring
AI poised to tilt job market leverage toward older workers
By Victor Swezey and BloombergMay 16, 2026
11 hours ago
U.S., Iran stall on Hormuz reopening as oil supplies tighten
PoliticsIran
U.S., Iran stall on Hormuz reopening as oil supplies tighten
By Skylar Woodhouse, Jeff Mason, Arsalan Shahla and BloombergMay 16, 2026
11 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
21 hours ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
12 hours ago
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
Future of Work
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
By Jake AngeloMay 16, 2026
1 day ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
5 days ago
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisMay 16, 2026
21 hours ago
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
Energy
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
By Jason MaMay 16, 2026
15 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.