AOL is rumored to be readying a new Internet-based product that would be available to users who are not AOL members, according to Light Reading, which cited several unnamed sources close to the company.
The new AOL service is expected to be available as a replacement option to traditional telephony and include E911 services, which would pit AOL against VoIP market leaders such as Vonage Holdings Corp.
AOL declined to comment about the rumor, citing company policy. And a spokesperson refused to confirm or deny that AOL would be making any announcements at next week’s VON conference.
There are more than 1,000 VoIP service providers in the US, and for AOL to essentially reposition its flagging dial-up Internet business with stand-alone VoIP, the company will need some stand-out technology.
Then again, there is expected to be a spate of consolidation among US VoIP players during the next few years.
AOL rolled out its initial members-only VoIP phone service in the US for its roughly 25 million subscribers in April, which required an AOL software client and could be integrated with e-mail and instant messaging. (The company launched its first VoIP phone service in Ontario, Canada last December.)
But only about 10% of those US subscribers were thought to have the broadband access necessary to use the service. AOL hasn’t said how many of its subscribers actually use its VoIP service, but industry watchers say its reception has been lackluster at best.
