Microsoft MSN lowers Internet dial-up price

AOL recently announced a price hike in their dial-up Internet service. Microsoft is responding with a new price promotion for their MSN Dial-Up Internet access service aimed at AOL users that don't want to pay AOL's high dial-up costs..

According to Microsoft's represenative, "With the current competitive landscape for dial-up Internet access and the longstanding competitive history in this market, we thought you’d want to know that Microsoft is now offering MSN Dial-Up for -- a reduction in the monthly service fee from \$21.95 to \$17.95 with no long term contract required and first month of service is free.  The reduced pricing is good for the first year."

They added, "As longstanding AOL dial-up subscribers begin exploring alternatives to a monthly price increase, Microsoft believes that this new competitive offer will give consumers an incentive to switch to MSN Dial-Up for their dial-up provider."

My question is when does dial-up Internet access in the U.S. become a loss-leader? That is to say, when does providing and maintaining the analog modem infrastructure start to become a non-profitable? Sure there are still millions of dial-up users, but they are jumping ship to high-speed broadband faster than the time it takes for a new American Idol episode to reach the Bittorrent network. Dial-up is dead... or soon will be, at least in the U.S.

I still remember my 300 baud analog model. RIP Dial-Up..Rest in peace...