Dow Jones' coverage of SBC-AOL deal:
March 11, 1999
Tech Center
America Online, SBC Form Alliance
To Provide High-Speed AOL Access
Dow Jones Newswires
America Online Inc. gave another boost to Baby Bells' high-speed Internet efforts, agreeing to offer a souped-up version of its proprietary service to homes served by SBC Communications Inc.
The companies said an upgraded version of AOL running over SBC's digital-subscriber-line technology will be available in the fall for about $40 a month. DSL can provide speeds up to 50 times faster than current dial-up modems. Financial terms weren't disclosed.
AOL Unveils Deal With Bell Atlantic That Could Move DSL Into Mainstream (Jan. 13)
AOL took its first pass at speedy Internet access in January, when it announced an alliance with Bell Atlantic Corp. to provide AOL members with DSL service. The deal marked AOL's first major effort to bring high-speed access to its 16 million users.
The companies said AOL will use SBC's technology to provide premium upgrades this fall for AOL members from areas where SBC units Pacific Bell and Southwestern Bell provide the service. The areas include California, Texas, Missouri, Oklahoma, Arkansas and Kansas.
The agreement also includes Nevada Bell, which is expected to deploy the high-speed service later this year.
The companies said SBC's high-speed access will enable AOL members to connect to the Internet at speeds up to 1,500 kilobits per second, well above the 56 kilobits per second that standard modems top out at.
SBC currently offers DSL-based Internet service for about $50 a month.
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