Why the $19.95 Internet fees may not last

Article Abstract:

The trend that began in 1996 to charge a $19.95 monthly fee for unlimited Internet access may end in 1997 as Internet service providers discover the charges are inadequate to cover their costs. After AT&T introduced the monthly price plan in Feb 1996, most online providers followed its example. Although AT&T and its rival America Online have not rescinded that pricing schedule, other companies, such as Netcom On-Line Communications Services and CompuServe, have returned to hourly rates. Sprint intends to charge higher prices for heavy usage and extra services. Service providers have found that the $19.95 charge does not cover their advertising and customer support investments. Their costs may continue to rise as telephone companies lobby for higher access fees.

Specialized Telecom Services, Wired Telecommunications Carriers, Prices and rates, Internet services, Internet service provider, Internet/Web overview

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Prodigy to launch Internet service in China

Article Abstract:

Prodigy is expected to begin offering an Internet service in China, as a joint effort between themselves and a state-controlled company, China North Industries. The program is to be introduced in Shanghai, and Prodigy will invest $50 million in the venture, controlling 80% of the service. The new venture is called Shanghai Prodigy Telecommunications and employs 100 Chinese nationals. The service will be offered to the Chinese public, and numerous hotels in Shanghai will offer it to their guests. Prodigy plans to expand the service into nine additional cities. Prodigy's push into China has been part of its turnabout strategy, which the company has been forced to adopt as it has continued to lose ground to its competition.

China, Services, Information services, Company service introduction, Service introduction, Prodigy Services Co., China North Industries Corp.

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