05/24 12:20 PRODIGY <PRGY.O>, BELL ATLANTIC SAY IN DSL HIGH-SPEED WEB PACT
IN BELL REGION
NEW YORK, May 24 (Reuters) - Online service provider Prodigy Communications Corp. <PRGY.O> said Monday it would partner with Bell Atlantic Corp. <BEL.N> to provide high-speed Internet access in the Northeastern Baby Bell's service region. Prodigy will use Bell Atlantic's digital subscriber line (DSL) technology, which allows for always-connected Web access at speeds 125 times faster than current 56 kilobit modems.
The agreement is the first step in Prodigy's plan to offer high-speed access nationwide.
This summer, Prodigy will begin to offer DSL access as a premium upgrade for its members in the Northeast, as the technology becomes available in major markets.
Bell Atlantic launched its DSL service last October, and plans to make it available in areas serving more than 8 million households by the end of 1999 and 16 million by the end of the year 2000.
Prodigy said it will begin offering DSL access to its customers in parts of Northern New Jersey, Philadelphia, Washington, Pittsburgh, Boston and New York City in as little as 60 days, and roll out to other markets as Bell Atlantic expands its DSL deployment.
Pricing for the service is not yet finalized, but Prodigy said its DSL access will be competitive with other high-speed offerings.
Prodigy shares were down 62.5 cents at $24.875 in midday trade on the Nasdaq stock market, while Bell Atlantic shares were up 37.5 cents to $55.875 on the New York Stock Exchange.
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