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

Trendingnow

1

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

2

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

3

Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998

1

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

2

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

3

Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
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
Add Fortune on Google for similar content.

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
Add Fortune on Google for similar content.

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

Nancy Pelosi’s husband could face misdemeanor charges after hit-and-run collision in Napa wine country that left one car with ‘major damage’
PoliticsNancy Pelosi
Nancy Pelosi’s husband could face misdemeanor charges after hit-and-run collision in Napa wine country that left one car with ‘major damage’
By Safiyah Riddle and The Associated PressJuly 4, 2026
2 hours ago
Treasury rolls out currency signed by Trump for Fourth of July
PoliticsDonald Trump
Treasury rolls out currency signed by Trump for Fourth of July
By Jeff Mason and BloombergJuly 4, 2026
3 hours ago
Russia’s fuel crisis is so bad that a mom and her baby waited in line for 18 hours to get gas — ‘Are we in the Soviet Union?’
EnergyRussia
Russia’s fuel crisis is so bad that a mom and her baby waited in line for 18 hours to get gas — ‘Are we in the Soviet Union?’
By Jason MaJuly 4, 2026
3 hours ago
U.S. debt is a looming crisis today but was once its own revolutionary masterstroke that helped launch a global financial superpower
EconomyDebt
U.S. debt is a looming crisis today but was once its own revolutionary masterstroke that helped launch a global financial superpower
By Jason MaJuly 4, 2026
6 hours ago
The Taylor Swift economy: Star-studded wedding at Madison Square Garden lifts luxury brands Christian Dior, Christian Louboutin, and Cartier
Arts & EntertainmentLuxury
The Taylor Swift economy: Star-studded wedding at Madison Square Garden lifts luxury brands Christian Dior, Christian Louboutin, and Cartier
By Kimberlee Kruesi, Andrew Dalton and The Associated PressJuly 4, 2026
8 hours ago
Trump Accounts are now available for kids. Here’s where the money will be invested in the stock market—in line with Warren Buffett’s advice
InvestingStock
Trump Accounts are now available for kids. Here’s where the money will be invested in the stock market—in line with Warren Buffett’s advice
By Jason MaJuly 4, 2026
8 hours ago

Most Popular

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
Success
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
By Preston ForeJuly 4, 2026
18 hours ago
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
2 days ago
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
AI
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
By Nick LichtenbergJuly 3, 2026
2 days ago
Economists have found an answer to slowing cognitive decline: Avoid retiring early, study finds
Economy
Economists have found an answer to slowing cognitive decline: Avoid retiring early, study finds
By Sasha RogelbergJuly 2, 2026
2 days ago
$25 billion CEO says one-hour interviews are a waste of time—he puts candidates through six hours of tests and wants them to order wine at lunch
Success
$25 billion CEO says one-hour interviews are a waste of time—he puts candidates through six hours of tests and wants them to order wine at lunch
By Orianna Rosa RoyleJuly 3, 2026
2 days ago
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
4 days 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.