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Usage-related
constraints associated with Juno's Although most subscribers to our free service use that service in a way that is consistent with the expectations on which our current business model is based, we have found that some make such heavy use of the service that they impose a disproportionate burden on our technical, human, and financial resources. Internal statistics collected in November 2000, for example, showed that just five percent of the users of our free service accounted for more than half of the total number of hours this service was used to access the Web. In December 2000, we thus began to implement certain measures designed to encourage the heavier users of our free service to alter their usage patterns, upgrade to one of our premium services, and/or participate in other revenue-generating activities that might help us cover the higher costs they cause us to incur. While the details of these measures may change over time, current and potential future examples include (but may or may not be limited to) the display of additional advertising to heavier users of our free service, and the prioritization of access to our free service according to usage levels and/or other factors. The prioritization of Web access among subscribers to our free service is likely to make it more difficult, for example, for one of the heavier users of that service to establish or maintain a Web connection, particularly during those hours when overall usage tends to be highest, than would be the case for a free subscriber whose usage pattern is more typical. The criteria used for such prioritization among Juno's free subscribers may include overall usage levels, specific usage patterns, the particular telecommunications carrier serving the subscriber in question, the subscriber's participation in certain programs that generate additional revenues for Juno, and/or other factors, and may (or may not) change over time, in each case as determined in the sole discretion of Juno's management. Such prioritization mechanisms, however, are not currently applied to the use (by either free or premium subscribers) of Juno's e-mail system to send or receive e-mail messages. Individuals
who do not expect to make heavy use of the Web may find our free service
to be adequate for their needs, and we are happy to provide such service
without any payment to Juno. We recognize, however, that some individuals
may prefer to choose one of our low-cost premium service plans in order
to avoid the constraints imposed on subscribers to our free service and
to avoid the persistent advertising banner that is displayed to users
of our free service while they use the Web. We are currently offering such premium access for the low price of $9.95 per month–significantly less than the $23.90 price of a subscription to America Online. To learn more about our premium services, click
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