In a statement to Newsbytes, AOL explained that it could not offer flat rate access to all customers because the costs were inflated by Deutsche Telekom’s refusal to lower the price at which it leases vital telephone lines connecting customers with AOL internet lines. This section of telephone lines is referred to as the “last mile”.
The AOL web site indicates that the company has been campaigning for flat rate internet access for two years. Although Deutsche Telekom has denied limiting the number of flat rate offers that AOL can make to customers, the AOL web site continues to state that the rates it is forced to pay for the last mile are about 125% higher than the actual costs of running it.