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Yahoo! Online goes live with AOL-busting price

Published on .

Yahoo! Online! powered by MCI Internet (http://online.yahoo.com) opens for business today with a price plan meant to undercut America Online's $21.95-a-month plan.

For unlimited access, Yahoo! Online will cost $14.95 a month for those with MCI long-distance service or those who switch to MCI. After three months, consumers choosing an alternative long-distance service will pay $19.95.

MCI can afford to charge 30% less for its service than AOL because "It's a different cost structure," said David Trachtenberg, executive director of brand marketing at MCI.

Yahoo! will support the service with sponsorships and banner ads, similar to the advertising it does on its main search page. Initial sponsors include CDnow, Egghead.com, Hallmark Cards, Travelocity and Career Mosaic.

Copyright March 1998, Crain Communications Inc.

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