ISP United Online strikes Best Buy pact

Discount Internet service provider United Online announced Wednesday a three-year deal to offer dial-up service at Best Buy stores and on the retailer's Web site.

United Online is expected to offer its Juno and NetZero discount narrowband access services in Best Buy outlets beginning this fall. The companies did not disclose further details, but they're expected to at a later date.

The announcement comes a week after United Online reported quarterly net income of $14.6 million, or 32 cents a share, compared with a net loss of $2.7 million a year ago. The company reported 2.55 million paid subscribers and a total of 5.2 million paid and free subscribers for the period ending June 30.

The company also reported 204,000 subscribers for its $14.95-a-month accelerated dial-up services.

Much of United Online's success has come from appealing to subscribers unwilling to pay premium rates for dial-up access. The company offers dial-up Internet service at $9.95 a month, considered a discount compared with ISP leader America Online's $23.90 subscription rate.

Indeed, executives at AOL parent AOL Time Warner blamed discount ISPs and broadband appeal to its mounting subscriber losses. America Online last quarter lost 846,000 dial-up subscribers.