America Online Inc and Microsoft Corp are considering charging their users flat rates for unlimited Internet access in a move that could spark a new round of price competition in the on-line industry. America Online is testing an offer to its more than 6 million customers of one flat monthly fee, and is looking to sell just its on-line service to users of rival Internet connection services. Currently, it charges users either $9.95 a month for five hours, or $19.95 a month for 20 hours, to use the service. Unlike rival services that offer unlimited hours, it charges $2.95 for each hour on-line beyond the basic time. Similarly, the Microsoft Network plans to charge $19.95 a month for a package that will include unlimited Internet use and access to exclusive Web content the company is assembling. It will also charge $6.95 a month for unlimited access to Network content alone.
