U S West Cuts Price of Fast Internet Access to $19.95
Denver, Sept. 15 (Bloomberg) -- U S West Inc., which provides local telephone service in 14 western U.S. states, said it's dropping the price of high-speed Internet access by a third to attract customers who now use slower connections.
The new service, MegaBit Select, costs $19.95 a month. It uses Digital Subscriber Line technology that boosts the capacity of ordinary phone lines to provide online access about five to 10 times faster than conventional modems.
Denver-based U S West has been the most aggressive local phone company in offering high-speed Internet access, signing up 70,000 customers, or 40 percent of U.S. DSL users. The company is moving to counter the threat of cable modems, which promise even faster Internet access, as well as unprecedented competition in its local-phone business.
MegaBit Select is available in almost all of the 40 cities where U S West already offers DSL, including Seattle, Denver, Minneapolis, Salt Lake City and Portland, Oregon. Customers can use the service for a maximum of two hours at a time. In May, U S West cut the price for its cheapest DSL service that offers unlimited use to $29.95 from $40.
The new service still requires subscription to an Internet access service, such as U S West.net for $17.95, making the price of the package $37.90 a month. Cable companies charge about $40 a month for data services, including Internet access through Excite At Home Corp. or Road Runner, which is owned by MediaOne Group Inc., Microsoft Corp., Compaq Computer Corp. and others.
U S West shares today fell 1 1/16 to 55 5/16. The company is combining with Denver-based Qwest Communications International Inc. in a $45.2 billion transaction. Qwest fell 1 1/4 to 28 3/4.
Sep/15/1999 16:41
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Ron Dior |
