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    AOL Hit With Child Porn 01/09/95
VIENNA, VIRGINIA, U.S.A., 1995 JAN 9
(NB) -- Fearing that some subscribers
have been trading in child
pornography, America Online has
contacted the Federal Bureau of
Investigation and suspended the
accounts of several members. AOL
spokeswoman Pam McGraw confirmed to
Newsbytes that the FBI is
investigating the case.

    In a letter to subscribers, AOL
chief Steve Case says, "We simply
will not tolerate such illegal
activity on America Online. To anyone
who may be using America Online for
illegal purposes, be advised that we
will terminate the accounts of those
participating and we will notify the
proper authorities of any illegal
activity that is brought to our
pension."

    AOL says that it respects the
privacy of its members and that
"electronic-mail, instant messages,
and private chat rooms are strictly
private. But if we are alerted to a
potential offense and we are sent
evidence, as we were recently, we
will vigorously pursue the matter."
AOL says members sent it e-mail
containing offending and potentially
illegal images and "as recipients of
the mail we were able to turn the
material over to the authorities."

    AOL says this is not be first
time it has faced such a problem. The
booming online service faced a
similar situation in 1991, which
McGraw says resulted in federal
prosecutions in Texas.

    Lately, says AOL's Case, "we've
had a growing problem with member-
created rooms whose title and
discussions violate our terms of
service." As a result, says Case, "We
are faced with looking at a higher
level of safeguards as it relates to
member-created rooms. We simply
cannot keep up with the sheer volume
of rooms created, and as a result,
from time-to-time rooms that violate
(the terms of service) remain open
for some period of time."

    AOL says it is looking at
"several alternatives" to solve the
problem. "We don't want to see our
members denied the privilege of this
fun and creative interactive
environment due to the abuses of a
few, but at the same time we do feel
some action is warranted to safeguard
this popular neighborhood in our
community."

    Recognizing the growing problem
of online porn, online providers have
put together a child safety brochure
giving parents tips and guidelines
for kids online. AOL has also
implemented parental controls that
allow parents to restrict what their
children can do on the service.

    The child safety brochure is
available on AOL in the Parents
Information Center, keyword:
parents.

    (Kennedy Maize/19950109/Press
Contact: Pam McGraw, 703-556-3746)

     CompuServe To Halve Online Rates
01/03/95 LONDON, ENGLAND, 1995 JAN 3
(NB) -- Newsbytes has learned that
CompuServe will shuffle its online
rates from February 5 onwards. An
announcement to the press and
subscribers has been scheduled for
later this week, although sysops on
the online service have already been
notified.

   CompuServe is not commenting on
reports that its online rates are
charging. Dave Gilroy, CompuServe's
UK customer service manager, had a
firm "no comment," when Newsbytes
contacted him late today UK time.

    According to Newsbytes' sources,
CompuServe subscribers on the online
services' standard plan, which
currently involves paying a fixed
charge of $8.95 a month, in return
for free off-peak access to
CompuServe's basic services through
its non-surcharged points of access,
will see their online hourly charges
during peak times standardized at
$4.80 per hour for all access speeds
to 14,400 bits- per-second (bps).

    This compares with a current
$4.80 per hour charge for speeds to
2,400 bps, and $9.60 for access
speeds to 14,400 bps. Subscribers on
the "alternative plan" which is
effectively a "pay as you go"
service, will continue to pay $6.30
an hour for 300 bps, $12.80 an hour
for 1,200 and 2,400 bps, and $22.80
per hour for 9,600 and 14,400 bps
access speeds.

    Subscribers to CompuServe in
Europe will also see their peak time
access fees drop, as the $7.70 per
hour surcharge for CompuServe's main
network dial-up points across Europe
will be abolished from February 5
onwards.

    CompuServe is hiking its standard
rate monthly "cover charge" from
$8.95 to $9.95, in return for the
price shuffles, as well as boosting
the inclusive number of mail items in
the monthly fee by 50 percent.

    At the same time, "basic rate"
CompuServe services, which are
accessible free of charge during off-
peak times through non-surcharged
CompuServe points of access, are
being increased by more than 25
percent. Newsbytes understands that
several non-basic rate services are
being folded into the basic rate
stable to increase the number of
services and areas to achieve this.

    Commenting on the planned
changes, Guy Kewney, an editorial
fellow with Ziff-Davis UK, and a
veteran journalist specializing in
communications in the UK for the past
two decades, told Newsbytes that
these price shuffles -- equivalent to
a 50 percent price cut for many
subscribers with high speed modems --
are almost certainly in response to
the threat of Microsoft and its soon-
to-launch Marvel online service.

    "Bill (Gates - president of
Microsoft) has gone out there with
Marvel and promised it will be
cheaper than anything else on the
market. This has clearly had an
effect on CompuServe, which is still
perceived as being an expensive
online service," he told Newsbytes.

    "CompuServe's problem is that it
does not have an effective in-house
off-line reader (OLR), and that makes
the service a truly online service
for many of its subscribers. I know
some users who blink very carefully
with their OLRs (blink is a term for
OLR usage) and so can keep their
bills very low, but for the vast
majority, CompuServe is perceived to
be an expensive option," he said.

    "By making these changes to its
charging structure, CompuServe is
clearly making life difficult for
Microsoft Marvel and any other online
services, such as America Online,
that are attempting to move in on
CompuServe's two million plus
membership," he added.

    (Steve Gold/19950103/Press &
Reader Contact: CompuServe UK, 44-
1272-670700)