Beginning in July, America Online, Inc. is increasing the monthly price of its unlimited use plan by $1.95 to $23.90, its first price hike since 1998. According to the Dulles, Va.-based AOL, the eight per cent price increase will help fund improvements in its service. AOL's other pricing plans will not be affected by the change.

Later this year, the company will release AOL 7.0, the most recent upgrade of its software, which will provide increased integration of local and broadband content and new advancements in popular destinations such as personal finance, entertainment, news and sports.

AOL says since its last price increase, the company invested more than $3.5 billion in the service to make it "easier, faster, and more reliable." AOL has also added new services such as You've Got Pictures, Shop@AOL, My Calendar, and AOL PLUS, as well as unique member benefits available only to AOL members, including the AOL/AAdvantage rewards program.

During this time, usage on the service has increased more than 50 percent, with the average member spending as much as 70 minutes per day on the AOL service.

AOL is a wholly owned subsidiary of AOL Time Warner Inc..