AOL, the online service that ushered in the Internet era for millions, said yesterday it would give its product away for free to broadband users.

AOL has 17.6 million customers who pay monthly charges for dial-up Internet access or other AOL services. But in September, anyone with high-speed Internet access can use the AOL software — and hold on to an www.AOL.com e-mail address.

"The number one reason people leave AOL is price," says Jeff Bewkes, chief operating officer of Time Warner, which owns AOL. "Now we're fixing that."

AOL has lost as many as 9 million subscribers in the past four years as people who sign up for broadband service see no reason to continue paying for AOL. Many AOL members, however, have held on to their AOL memberships because they didn't want to lose their AOL e-mail addresses.

Meanwhile, Yahoo and Google dominate the $17.4 billion online advertising market, projected to grow to $26.4 billion by 2010, according to market tracker Forrester Research.

AOL says it will no longer advertise dial-up service — which ranges from $9.95 to $25.90 — at savings of $1 billion a year. It says it will make more money by increased advertising.

"They still have huge challenges ahead," says David Card, an analyst with market tracker Jupiter Research. "Yahoo and Google are very well-positioned, and AOL is reinventing itself on the fly. But this move is the right thing."

To stop paying for AOL service, customers must call (888) 265-8008. They can't do it online or via e-mail. Members who quit over the past two years can reclaim their e-mail addresses for free. They must sign on to AOL to reactivate an e-mail address.

Time Warner shares gained 2.6 percent, to $16.67, after it reported second quarter earnings that slightly beat analyst estimates.