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America Online Eases Call Logjam

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by Kathleen Day

Thursday, February 24, 1994

America Online Inc., which has been plagued by capacity shortages in recent months, said yesterday that subscribers should face fewer busy signals when they try to log on during peak hours.

"It has become easier to get on, but it's still not as good as it needs to be," said Stephen M. Case, America Online's president and co-founder. He repeated the Vienna-based company's promise in recent weeks that customers will see a steady improvement in capacity, with a complete solution by early spring.

Case said the company has been upgrading its software, easing the caller logjam caused by too many subscribers trying to sign on between 9 p.m. and midnight Eastern time.

The stock of the company, one of the largest providers of interactive services to personal computer users, closed at a record $80.25, up $6.75 in trading on the Nasdaq stock market. But Case said the gain was unrelated to the company's statements yesterday that its capacity squeeze has eased.

He speculated that the stock climb was Wall Street's reaction to the company's recent announcements that it is continuing to increase the types of information services it offers, including providing more data in the area of personal finance.

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