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AT&T to End Cheap Internet Service Plan

November 29, 2001|Reuters

AT&T Corp., the No. 1 U.S. long-distance telephone and cable television company, said this week that it would end its discount Internet service plan because it was unable to offset the low access costs with online advertising.

AT&T's i495 service, which was launched in July 2000, offered 150 hours of Internet access a month for $4.95 but required subscribers to view advertising banners while using the service.

AT&T said it notified its i495 customers in October that the discounted plan would end on Jan. 4.

Those customers will be switched to a plan that charges $10.95 a month for 50 hours of Internet access, or they can choose more expensive plans with additional hours.

The i495 plan "was subsidized by online screen advertising. The world has changed significantly in the last year," AT&T spokeswoman Janet Wyles said.

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