AOL Australia: Take two

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13 October 2000 03:01 PM
Tags: aol, australia
America Online (AOL), determined to get a piece of the local ISP action, commenced the re-launch of the AOL brand into Australia today through its joint venture operation with local telco AAPT and AOL Australia.

An aggressive television advertising campaign -- with a host of colloquialisms and Australian Olympic colours -- was rolled out hand-in-hand with a competitive payment plan that offers customers unlimited access and a "lite bite" price tag.

But is it too little too late? "It may well be the case of shutting the door after the horse has bolted," ISP analyst Paul Montgomery told ZDNet Australia. "It has taken AOL two or three years to realise that the Australian public was not going to buy its product."

New Pricing
AOL Australia is now going to market with a AU$24.95 per month, unlimited Internet access plan, inclusive of GST. Customers can otherwise opt for the Lite Price Plan that provides four hours of online access at AU$8.00 plus AU$2.50 for each additional hour -- both prices are inclusive of GST. The lite price also includes 50 bonus hours used in the first month of the service.

Although AOL Australia's new pricing structure may be more competitive for the local market, Montgomery says it will not be an easy ride. "AOL has a long way to go if it expects to mirror its success in the US market".

Shrugging off its US parentage, AOL Australia remains adamant that it is an Australian company from the ground up. "We have an Australian management team and on a top-tier level we supply Australian content," a spokesperson for the company told ZDNet Australia. "We wanted to make a bit of a bang and introduce our new brand with a different look and feel."

Not the same old AOL Australia?
Other initiatives announced by AOL Australia today included its network expansion, provided through AAPT's wholly owned subsidiary connect.com.au. AOL Australia forecasts that 70 points of presence will be operational Australia-wide by September. Furthermore, 190 AAPT Cellular One retail outlets -- where customers can register for the product -- will be available nationwide by the end of August.

AOL Australia is also giving its call centre operations a face-lift and scaling up technology with a AU$3 million investment.

The site will also get new features, including an improved welcome screen, updated content channels and a new Money Channel were also announced today.

But analysts reconise AOL's success in the US was due to being first to make the Internet easier -- a point AOL Australia is emphasising in its new ad campaign. And that point is not as dramatic as it used to be with new Microsoft Windows Intenet features, leaving some to question its second bid for success.

"AOL may have woken up to what works and what doesn't," Montgomery said. "But it remains to be seen if it's too late for them".

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