I love this post from Recodes Peter Kafka, who points out that AOLs solid Q2 numbers arent really based on its high-profile media properties like The Huffington Post, but rather the dial-up business, which has been minting pure profit for years. Its safe to assume that most of these people dont even know theyre paying, and probably dont need to pay AOL for access, especially if they have broadband service from their local cable or phone companies. On the flip side, its also likely that a lot of those people cant get broadband service where they live — and mobile broadband costs far more than $20 a month. You can also draw a straight line from the continued existence of AOLs dial-up business to our current far-reaching debate about broadband: dial-up services were once fiercely competitive because everyone in the country had phone service and the phone companies themselves were prohibited from interfering with the data traveling on their lines.
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