AOL: Broadband is 'a side issue' Lisa Hook speaks about customer migrations narrowband is going to be around forever" showing an interesting look into the mindset of AOL executives. Hook goes on to admit that their broadband push has been "more methodical perhaps than the market would want", but insists that "Slow or fast, we'll be there." The Washington Post has an interview with AOL Broadband President Lisa A. Hook, specifically asking her how the company intends to migrate dial-up customers to more expensive broadband connections. Hook starts off by predicting that "" showing an interesting look into the mindset of AOL executives. Hook goes on to admit that their broadband push has been "", but insists that "







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topics flat nest page: 1 · 2 · next

pnh102

Reptiles Are Cuddly And Pretty

Premium Member

join:2002-05-02

Mount Airy, MD pnh102 Premium Member LAME! This chick sounds exactly like that investment commercial of late... We've been in business for eighty years! We give the customers what we want!

bobd1950

Homer

Premium Member

join:2002-03-17

Pine Brook, NJ bobd1950 Premium Member Re: LAME! said by pnh102: This chick sounds exactly like that investment commercial of late... We've been in business for eighty years! We give the customers what we want!

..when they offer Broadband...its worse than dial. So u could see her warped "logic" ..when they offer Broadband...its worse than dial. So u could see her warped "logic"

pnh102

Reptiles Are Cuddly And Pretty

Premium Member

join:2002-05-02

Mount Airy, MD pnh102 Premium Member Re: LAME! said by bobd1950: ..when they offer Broadband...its worse than dial. So u could see her warped "logic" Well she may have a point... somewhat... most AOL users don't want to deal with the hassle of getting broadband, and they also don't see a need for it in general, because AOL takes care of them so well.



The people who get broadband are the ones who don't need or want a service like AOL, so AOL most likely won't win new customers by implementing it. Or, AOL probably won't do anything with broadband until they start losing a significant chunk of their customers. I think its safe to say that because they are in the toilet financially, they don't want to spend cash they don't have on anything other than a "sure" investment.



But on a more humorous note... when they do start doing broadband, they can call the company AOL@Home Well she may have a point... somewhat... most AOL users don't want to deal with the hassle of getting broadband, and they also don't see a need for it in general, because AOL takes care of them so well.The people who get broadband are the ones who don't need or want a service like AOL, so AOL most likely won't win new customers by implementing it. Or, AOL probably won't do anything with broadband until they start losing a significant chunk of their customers. I think its safe to say that because they are in the toilet financially, they don't want to spend cash they don't have on anything other than a "sure" investment.But on a more humorous note... when they do start doing broadband, they can call the company AOL@Home

Voyager2K2

join:2001-10-04

Wayne, PA Voyager2K2 Member Let Me Be the First to Say It. Ditch the client Lisa! vfpguy

Alias Dotnetguy

join:2001-07-21

Wayne, NJ vfpguy Member Re: Let Me Be the First to Say It. Oh Horrors! People might actually have to learn something about the Internet and their computers.

korym

Go Wisp's



join:1999-12-23

Richmond, VA korym Ummm... What's interesting is that AOL's own broadband leader seems to be focusing more on narrowband than broadband. Yikes.

Karl Bode

News Guy

join:2000-03-02 Karl Bode News Guy Re: Ummm... Narrowband which she believes will always be there for her no less.....



I liked the bit about color coding the DSL installation packages and including videotapes......"Why, even a monkey could be browsing at lightning fast speeds in no time!!" jethrogump

Premium Member

join:2001-03-02

Mesquite, TX jethrogump to korym

Premium Member to korym

AOL is really a content provider they hope to hook and crook you into buying just like a infomecial from Ron Popel or Tony whats his name and the Gazelle Freestyle Elite.



She actually has a point in the numbers game because to AOL as SUB is just a SUB another number on a credit card they want people to keep AOL dialup as long as possible its very profitable.



$24.99



MINUS



UUNET-Brokewing-TWTC- Aleron-Megapop cost for backbone and POP= $5-7.00 per SUB



Customer care: $1.00 with educated subs with beginners it can go $2.50 month per SUB on average. The $9.95 guys want them to keep stupid beginner SUBS.



Content: $2.00-$3.00 per SUB



Total $10.00 and it can get cheaper than this on



Total $16.95-$12.95 profit for AOL.



Now on these Cheap $9.95 account you make around $2.00 per sub and the industry average for dialup is $14.95 per sub per month.



Budget rarely provides much content we all find our own anyway thats what MSN and Yahoo are good for free content.



DSL is not near as profitable for the ISP now it is for Ma Bell. It cost Bell around $20 bucks in real dollars to provide what they provide to an ISP. They let the ISP make like $3-5 bucks. When you sell DSL service you have to face it something named Bell can make you or screw you to the wall. Whoopie.



Wirelesses offer good money for the regional ISP or the guy that can find his little nitch in the cornfield. Its not an area AOL could hope to conquer. WISPing separates the men from the boys quickly.



Second its an economy thing many folks are tightening the purse strings they will stay or migrate back to dialup because of their economic situation for the next couple of years.



Third many folks like email but really rarely just surf the net mostly our aging population and well many folks in their 40s if its not at work I have better things to do at home. The real switch for this group is still good old VOIP cheap all you can eat long distance service worldwide.



The future of broadband though is Wireless and VOIP plain and simple:)

[text was edited by author 2002-09-13 17:45:14]

bobno

join:2000-10-31

Orland Park, IL bobno Member Re: Ummm... you hit the nail on the head with the costs. As I read the article I could hear the thought process "No churn, don't cannablize our current (profitable) user base, status quo." Narrowband being around forever is more of a desire or hope on AOL's part to keep their job simple and profitable. Whether the market actually does is another story.



Another telling subplot here is the lack of urgency of a content provider to push broadband. That tells me there is no market for value-added content or content-on-demand services for the foreseeable future.

Mike

Mod

join:2000-09-17

Pittsburgh, PA Mike to korym

Mod to korym

cool, AOL marketing, administration, and programming all have no idea about the industry or what the hell is going

dvd536

as Mr. Pink as they come

Premium Member

join:2001-04-27

Phoenix, AZ dvd536 to korym

Premium Member to korym

said by korym: What's interesting is that AOL's own broadband leader seems to be focusing more on narrowband than broadband. Yikes.

people with broadband are more apt to be tech saavy than those on narrowband.

so easy to use no matter its. . . . . "maybe if i click 'buy it' those popups will go away. gotta love AOL people with broadband are more apt to be tech saavy than those on narrowband.so easy to use no matter its. . . . . "maybe if i click 'buy it' those popups will go away. gotta love AOL elboomboom

join:2002-01-27

El Cajon, CA elboomboom Member Re: Ummm... LMAO.........now that is funny.......

tomkb

Premium Member

join:2000-11-15

Tampa, FL tomkb Premium Member side issue my a$$ And history will record with that comment that AOL was never the same again as investors pulled out left and right.

phxmark

What Country Are We Living In?

join:2000-12-27

Glendale, AZ phxmark Member Re: side issue my a$$ quote: ......"Why, even a monkey could be browsing at lightning fast speeds in no time!!" said by tomkb: And history will record with that comment that AOL was never the same again as investors pulled out left and right. As monkeys were the only customers AOL had left.



AOL was made for monkeys. As monkeys were the only customers AOL had left.AOL was made for monkeys.

Shipon

Roflcopter

Premium Member

join:2001-12-05

Anaheim, CA Shipon Premium Member Re: side issue my a$$ said by phxmark: quote: ......"Why, even a monkey could be browsing at lightning fast speeds in no time!!" said by tomkb: And history will record with that comment that AOL was never the same again as investors pulled out left and right. As monkeys were the only customers AOL had left.



AOL was made for monkeys.

You just insulted the monkeys...



AOL was, is, and always will be for the n00bs, thus the phrase "AOL N00b". You just insulted the monkeys...AOL was, is, and always will be for the n00bs, thus the phrase "AOL N00b". elboomboom

join:2002-01-27

El Cajon, CA elboomboom to phxmark

Member to phxmark

said by phxmark: quote: ......"Why, even a monkey could be browsing at lightning fast speeds in no time!!" said by tomkb: And history will record with that comment that AOL was never the same again as investors pulled out left and right. As monkeys were the only customers AOL had left.



AOL was made for monkeys.

This is the most factual statement that I have heard in quite a while........hehehe This is the most factual statement that I have heard in quite a while........hehehe vic102482

Premium Member

join:2002-04-30

Upper Marlboro, MD vic102482 Premium Member Somebody must have a nice round rump Because she sure seems to be sitting on it, narrowband will be around forever just like audio tapes, but that doesnt mean that the market share that the particular product holds will.



People are switching over to broadband everyday, and the name of the game is customer, they arent playing by the rules, so nobody should be suprised if they lose.



...I am truley a man with many talents.

bmantz65

join:2001-07-23

united state bmantz65 Member Re: Somebody must have a nice round rump said by vic102482: Because she sure seems to be sitting on it, narrowband will be around forever just like audio tapes, but that doesnt mean that the market share that the particular product holds will.



Yep, and who do you suppose loses out this market share? Yep, and who do you suppose loses out this market share? vic102482

Premium Member

join:2002-04-30

Upper Marlboro, MD vic102482 Premium Member Re: Somebody must have a nice round rump said by beeman65: said by vic102482: Because she sure seems to be sitting on it, narrowband will be around forever just like audio tapes, but that doesnt mean that the market share that the particular product holds will.



Yep, and who do you suppose loses out this market share?

And who do you suppose will go crying and blaming M$? And who do you suppose will go crying and blaming M$? garmst

join:2000-09-17

New York, NY garmst Member Many Happy dialup users I know of a lot of people who very happy with their dialup. They have no interest in spending any more than what they are spending for internet access. They don't care one bit about MP3's and Video on demand. They do a few minutes of browsing and email a day and thats it.



These folks like their AOL and dialup. I don't think many of them would change even if DSL or Cable was the same as dialup in price. Inertia.

SanFrancisco

Premium Member

join:2002-05-04

San Francisco, CA SanFrancisco Premium Member Re: Many Happy dialup users said by garmst: I know of a lot of people who very happy with their dialup. They have no interest in spending any more than what they are spending for internet access. They don't care one bit about MP3's and Video on demand. They do a few minutes of browsing and email a day and thats it.



These folks like their AOL and dialup. I don't think many of them would change even if DSL or Cable was the same as dialup in price. Inertia. Just like my dad who keeps asking me why we need DSL when dial-up is good enough for him. Just like my dad who keeps asking me why we need DSL when dial-up is good enough for him.

DSL man0

join:2000-09-07

Pittsburgh, PA DSL man0 Member Whatever.... I know a lot of people that are very happy driving a Geo Metro but they would be happier driving an Escalade. They are happy cause at least they have a car.



Give me a break. In 10 years we will be doing so much on the web that a dial-up will be obsolete. the only people using it will be those that are on the road for business purposes and just need to check e-mail. Even in those cases there will probably be data jacks at the local bar so you can check your laptop while having a bottle of Sierra Nevada. This chic is really missing the boat and AOL is going to continue to lose market share if they don't make a change in their sentiment toward Broadband. It is inevitable that we will all be using Broadband eventually, just like video tapes give way to DVD, cassettes give way to CD, etc. People will still use them but most will be using the newer technology that has more to offer. Broadband will continue to grow and if AOL holds on to the "dial-up" market they will continue to shrink.



There is no margin in the dial-up market either. Broadband ISPs make as much on 1 business DSL customer as AOL makes on 5-25 dial-up customers.



AOL was made for monkeys, "It's so easy, no wonder it's number 1," and now it's time to evolve.

Klendathu

join:2002-02-24

Studio City, CA Klendathu Member Re: Whatever.... I totally agree. If that behemoth of a company could not forecast that broadband would be the next big thing, then they just need to disintegrate into oblivion. With online gaming and p2p programs, high speed is the only speed to go. Their merger with Time Warner was also a stupid mistake and will inevitably be their downfall. Has anyone seen any synergy between the 2? Nope. They are 2 different cultures dishing out the same entertainment media. AOL should have been like Phillip Morris, at least they diversified their companies so that when they got hit with the tobacco settlements, they could stay afloat with their other product offerings. 2farfromCO7

join:2000-10-14

Farmington, MI 2farfromCO7 Member Re: Whatever.... You got this wrong big time. DOWNFALL FOR WHOM???? AOL??!?!!?!. AOL won big time. Steve Case has never stopped smiling. He got away with murder. He bought that huge media conglomerate: film production, cable broadcaster, cable MSO, magazine publisher, book and music publisher for internet stock at it's peak. He sold high. AOL stock would be worth far less had they not bought TW. TW screwed up by allowing the merger. But don't criticize AOL, they won big. 2farfromCO7 2farfromCO7 to DSL man0

Member to DSL man0

I thought we were talking about RESIDENTIAL BROADBAND. AOL will never provide BUSINESS CLASS ANYTHING. Comparing RESIDENTIAL dial-up to BUSINESS broadband is not fare. The margin for residential dial-up is far greater than piggybacking ISPs make on $40-$50 residential broadband where they are completely at the mercy of monopoly infrastructure providers who could crush them in an instant if there was no fear of government regulation. AOL's cost is only like $7/month per dial-up user, it's about $40 for broadband. Plus and installation problems are paid by the ISP. Dial-up has none of these problems, every customer is a guaranteed profit. magstan1

join:2001-11-09

Collinsville, OK magstan1 Member AOL is NOT for everyone I have used AOL and Compuserve and their format is for idiots (everything you need to do is written down for you. You just click on the icon box and the ISP's do the rest.) I wonder if AOL Broadband will be the same. Seems moot to me to just click on an icon instead of typing in a URL address. Anyway, I'm sure AOL users will pay for PREMIUM service.

Anonymouse11111

@tamqfl1.dsl-verizon. Anonymouse11111 Anon Re: AOL is NOT for everyone I Work for AOL BroadBand, and the content does not change on Broadband. The way it works is that you install a special version of AOL that creates a VPN over Time Warner Cable's connection or over the DSL connection offered through the RBOC Partner.



You CANNOT connect to the Internet, or use IE or Netscape unless you are signed on. This is due to the VPN feature needing to authenticate with AOL prior to allowing you Internet access.



At the same time, Broadband is very popular with parents, whose kids are screaming for High Speed Access. The parental controls you assign in the AOL client are passed to Internet Explorer, which prevents the kiddies from going to the adult sites...provided the parents take a PROACTIVE role in assigning parental controls.



My call center handles 120,000 calls a week. 35,000 of them come from Broadband customers. So yes, we are making inroads using Roadrunner and TWC into the Broadband market.



And soon...we will be partnering with Comcast to reach more people and offer BB.



And FYI? I do not use AOL as my primary client, nor for broadband. I like my DSL.



The Mouse Zoz0

join:2001-07-29

Houston, TX Zoz0 Member Re: AOL is NOT for everyone Mouse... I DID indeed note you don't use them as your service. Understandable but I'm curious about something... this VPN client you utilize (curious because this may affect stuff in MY workplace as well should AOL get a serious legup) is it PPPoE? Or some other weird proprietary form of connection? Just wondering if it's configurable with routers and such or if AOL is trying to control distribution on multiple PC's etc?

Motorhead5

join:2000-06-05

Woodside, NY Motorhead5 Member Incredible! "narrowband is going to be around forever." Well, duh, with an attitude like that, it certainly will.



It's nice to be concerned about narrowband, considering that's the only option for many. Maybe it does make some sense to continue to support and maintain it, but as a major ISP's main focus? As opposed to the broadband - a "side issue..." well, that's just stupid.



Prediction: Stock values dive further and faster than market share.

DaveDude

No Fear

join:1999-09-01

New Jersey DaveDude Member i dont agree If she believes its economically good for dialup to be around forever she is lost. Eventually it will be cheaper to have broadband, because the market will push for it and wireless is going to make an impact soon(maybe not this year). So why have a phone line for dialup, when you have cable modem, cell phone etc? Even hotels have broadband connections 2farfromCO7

join:2000-10-14

Farmington, MI 2farfromCO7 Member Re: i dont agree Then we will need universal pricing and service suburb to suburb within metro areas and whole states, just like phone service.

burgermeister

All Computers Are Junk

join:2000-10-23

Utica, MI burgermeister Member Not the Lisa I remember... Back when we were dating, she was really into broadband. Wonder what happened? elboomboom

join:2002-01-27

El Cajon, CA elboomboom Member Re: Not the Lisa I remember... said by burgermeister: Back when we were dating, she was really into broadband. Wonder what happened? She took offense to the word broad.........and stuck to narrow........Now no one calls her broad........hehehe She took offense to the word broad.........and stuck to narrow........Now no one calls her broad........hehehe

morbo

Complete Your Transaction

join:2002-01-22

00000 morbo to burgermeister

Member to burgermeister

lol

SKYHN

Lu.. Lu.. Lulululu

Premium Member

join:2001-09-16

99999 SKYHN Premium Member Why we are all moving forward to the future... Aol will cling to its antique dial-up. They really dont care about broadband. Ive caught them lying to me 2x, and after all the problems I had with email and everything after 12 solid months of good service, I just had to cancel.



I encourage everyone who has Aol broadband, weither its been working good for you or not to cancel. Its all downhill from here now.



And to think, Al Gore created such a great thing in the internet, only to have Aol bastardize it. Cyber2lz

join:2001-11-15

Odessa, FL Cyber2lz Member AOL - challenged I added a new Exchange user today. She wanted to know if she could keep her ScreenName. When I told her "No, this is a corporate account" she couldn't believe it. Then she asked for AIM. I told her we did not allow the "Virus, Formally known as AOL on any corporate machines". She then looked at me and said "You need to get into the twenty-first century, dude".

Go figure.

morbo

Complete Your Transaction

join:2002-01-22

00000 morbo Member Re: AOL - challenged JoshCloud9

join:2001-08-25

Atlanta, GA JoshCloud9 to Cyber2lz

Member to Cyber2lz

That is too funny, dude! Rammer

Premium Member

join:2001-03-06 Rammer Premium Member fact is they no that even with all the surveys that claim the us is wired for broadband is only a scam



the money still lies in dial up as that is where the most customers are now and will be there till the market picks up and all the mergers are done

then and only then will cable and dsl start too upgrade there systems

so those who want broadband can have access.



then the customers will come cgw123

join:2002-09-13

Moraga, CA cgw123 Member a dissenting view Well, I'll admit it - I use AOL DSL, and think that it has advantages. For about $40/month (AOL is $20/month if you buy it a year at a time, and dsl is another $20/month) I get dsl service provided by Pac Bell, but billed through AOL. I typically get about 800/115 down/up speeds, and the service has been very reliable, especially since AOL replaced (for free) my original usb modem with one that connects to either a NIC or usb port.

My work email is via exchange, and Outlook is Outlook, regardless of the ISP. For web browsing I usually use IE. As long as IE runs fast, what does it matter which ISP I use; the web is the web.

But the tiebreaker comes when I am on the road. I travel 3-4 times a month and usually take a laptop. AOL always has a dialup number that is a local call, even in Europe. This is not the case with many other services.

I can't find another service that gives me the broadband connection for the price, plus local dialup service on the road. Maybe if all hotels provided broadband support, it would matter less. But my experience is that only about 1 hotel in 5 that I stay in does. The rest of the time it is dialup, and for those times, AOL has the edge. 2farfromCO7

join:2000-10-14

Farmington, MI 2farfromCO7 Member Re: a dissenting view Are you talking about business travel?? What year is it. I hear that was business activity that was very commonplace in the late 1990s. I saw a film about it in a natural history museum:) Seriously, roaming isn't a concern as much for most people lately.

Skilos

join:2000-08-19

Astoria, NY Skilos Member If AOL whould die If AOL whould die does anyone think that broadband whould be better off. Maybe all the AOLers whould come over to DSL or Cable.

•••••• show 6 replies TercelChick

join:2002-08-13 TercelChick Member Everybody, Leave Lisa Alone She probably thought "broadband" was something like The Dixie Chicks. That would explain her contention that broadband was simply a "side issue" for AOL.



Edit: corrected silly typo.

[text was edited by author 2002-09-13 23:07:54]

HETTATLONGUN

Premium Member

join:2001-02-20

Santa Rosa, CA HETTATLONGUN Premium Member She's got it Right Heh! She pretty much hit the nail on the head and most of the posters in this thread missed.



I think her take on the current state of broadband is on the money, as far as migrating the current AOL customer base is concerned. AOL's typical customer, for the foreseeable future, is going to be the dial-up consumer. Many AOL'ers can't get DSL or cable access because of where they live. Many AOL customers just won't make the move to broadband because of the cost, or as one poster put it, inertia.



My family is on AOL. I'm the only one on DSL. I've got AOL DSL and it works alright for me. I don't think my sisters would ever consider giving AOL up. It doesn't make any difference to them about cost or speed. They have their AOL buddies, they have their AOL chatrooms, they have their AIM and their AOL email. If they buys stuff on the web, it's through AOL and they have it charged to their AOL account or buy from a merchant that uses AOL's referral service. As far as I know, none of them really surf outside of AOL and I don't think any of them use any browser other than AOL's browser. When I send them links, I have to copy/paste into the AOL browser, then send it to them as a Favorites link. Sending them a plain URL usually doesn't work, no matter how I explain it on AIM.



Heh, I know guys with broadband that still have an AOL account because other family members don't want to give AOL up!



Most of the people that post at DSLR think outside of the box. That's not the AOL customer. Most AOL'ers aren't comfortable outside of the box. They like the warm, fuzzy feeling they get with AOL. It may sound funny but most really like that "You've got Mail!" sound. Rick5

Premium Member

join:2001-02-06 Rick5 Premium Member A Monkey has Arrived!! LoL...I just love these AOL posts..because everyone of US that uses AOL becomes a Noob..an idiot..a fool...and a Monkey.



Well, guess what? The jokes on you.

Because for whatever reason, you're living back in the early 1990's when it comes to what AOL is.



AOL is dialup...and DSL..and guess what? They're even RoadRunner!

Yep..that 2000/384 service for 44.95 per month!



Now, how many of YOU have those speeds on YOUR broadband?

Not many, huh?



And certainly, not for that price.



Like a poster also said above...AOL really does have a helluva DSL package too.

For around 41.00 per month..you can get what many others

offer for 50.00 on up.

And, that includes the AOL service itself..something that

would cost an additional 14.95 on a Bring your own access plan if using another ISP.

So..their DSL really comes down to 41.00 and change

vs what would be 65.00 or more with another ISP.



And, with AOL DSL..it's a month to month contract..not a year long one as with many other DSL providers.



As for the service itself, while many like to portray it as something for "noobs"..this "noob" has alot of experience. And what AOL really is is about convenience

in many respects.

Instead of surfing all over the place..it's right there

and very easily accessible.

Their mail program really is nice and convenient and

personally, I'd much rather use AOL's IM capabilities

over AIM's anyday.



I've also been beta testing AOL 8.0, and they've done an

outstanding job with it in adding spam controls for mail..

and themes for the program itself.



And, this doesn't even address their proprietary content..

things like the special guests they have in chat rooms..

and the all around entertainment for an entire family.



Really, I think it's unfair the way people portray what AOL is today. Because in none of your comments do you ever talk about the above. It's one thing to critisize a service..but do it fairly based on what they are.



As far as Broadband vs dialup..in all honesty after using

2000k RR service since early 1998..I think there are many things it just really isn't necessary for.

If you're going to surf an average webpage that's not

very graphic intensive..or just check email or use

chat..I'm hard pressed to see any difference at all.

A good 56k modem service will load those pages just as

fast as BB will. Certainly, for things like heavy downloading, video etc..BB has it's place..but that just

isn't what everyone uses the net for.



I personally think AOL will find it's place in the BB mkt

with a somewhat lesser BB offering..something along the lines of 256k - 512k service.

That would give the speed that many people need for the

occasional downloads..while still keeping the price reasonable for the majority of consumers.



29.95 Broadband will sell in large numbers..and that's how

AOL will convert large numbers of users...while still offering faster speeds for those who want it..and those willing to pay for it.



I think AOL would be there today if the Bell's weren't

getting such a large part of that fee.

That's the challenge they need to overcome...how to take the price down, along with the speed of the service,

while still maintaining a decent level of profitability per sub.



But, for now..i really don't agree that they're not

pushing BB..It's advertised heavily on the AOL service,

and there's a wide variety for people to choose from.



And, all at prices that are arguably better than what most here are paying.



~RRR

•••••••••••••• show 14 replies

Apple4life

I'M Going Nucking Futs

join:2002-09-07

Bronx, NY Apple4life Member OH NO! i can't believe this woman said narrowband will be around for ever. if the president of the broadband division of AOL is saying that broadband will be around forever then you should get the idea of what their focus is on. in other words, if you are a stockholder. get your money out of there. let the monkeys use AOL if they like it so much. as for me i will stick with earthlink. great isp.

••• show 3 replies your comment.. page: 1 · 2 · next

