America Online on Thursday said it plans to launch a lower priced online service to thwart competitors from luring bargain hunters and savvy Web users, who can do without its flagship's bells and whistles.

The new service will launch under the Netscape brand, which AOL owns, and will cost $9.95 a month starting in March.

It will also be backed by a full-fledged marketing campaign, beginning with a splashy auction on eBay of the most popular e-mail names, followed by a heavy online and direct marketing promotion campaign.

Copyright Reuters, 2004