News: 12:34 DJS America Online To Offer Broadband Service Over Bell Atlantic Netw
12:34 DJS America Online To Offer Broadband Service Over Bell Atlantic Network
DULLES, Va. -(Dow Jones)- America Online Inc. plunged headlong into the
emerging market for high-speed, multimedia services Wednesday, announcing a
plan to offer services over Bell Atlantic Corp.'s broadband network.
Under the deal, Bell Atlantic (BEL) will supply America Online (AOL)
with access to its high-speed digital subscriber line, or DSL, network. Terms
of the deal weren't disclosed.
The agreement will allow AOL a means to provide fast Internet service,
interactive home video and other communications services. It also will help
escalate the broadband battle between local-phone carriers offering DSL
technology and cable-television offering service over their coaxial cables.
AOL and other Internet service providers have been battling AtHome
Corp. (ATHM) for access to its broadband cable network. AtHome, which is owned
by Tele-Communications Inc. (TCOMA, TCOMB) and other cable carriers, has
refused AOL's request. The ongoing fight is a potential problem to AT&T
Corp.'s (T) planned $32 billion acquisition of TCI because AOL has raised the
cable-access issue with regulators considering that deal. Just as local phone
companies have a mandate to open their lines to competitors, AOL wants cable
companies to open up their broadband connections.
Phone companies have been aggressively moving into DSL, which enables
traditional copper telephone lines to deliver faster Internet service and data
transmission. DSL is aimed at fending off the challenge posed by companies
that promise faster service through cable modems. (Other than AtHome, the only
major cable-modem Internet service is Time Warner Inc.'s Road Runner.)
It is unclear whether AOL will continue to fight with AtHome, now that
it has access to Bell Atlantic's DSL network. Bell Atlantic's network covers
13 states in the Northeast and mid-Atlantic, but that will grow upon the
completion of the Baby Bell's pending acquistion of GTE Corp. (GTE). AOL
already has been conducting DSL tests with GTE.
This summer, Bell Atlantic's Infospeed DSL access will be offered as a
premium upgrade for AOL members in Bell Atlantic's service area. Bell Atlantic
plans to make its DSL technology available in areas covering 7.5 million homes
by the end of 1999, and expects to nearly double that number to more than 14
million by the end of the year 2000.
America Online plans to announce DSL pricing when the roll-out begins
this summer, but expects the DSL upgrade to cost AOL members less than $20
extra a month. AOL members who take part in the DSL option will gain "always
on" access to AOL, because no dial-up is required for DSL users since they are
always connected. AOL members using DSL will be able to use their computer and
telephone or fax simultaneously on a single phone line.
Bell Atlantic will be able to offer AOL members certain option
telecommunications products and services. The companies are also planning
other co-marketing opportunities directed to AOL members with DSL access.
Copyright (c) 1999 Dow Jones & Company, Inc.
All Rights Reserved.
(:AOL) (:ATHM) (:BEL) (:GTE) (:T) (:TCOMA) (:TCOMB)
01/13 12:34p CST
in case we've all forgotten, AOL/GTE (now DSL with Bell Atlantic) uses fujitsu which in turn is ORCTF related product |
