America Online and Bell Atlantic Announce Strategic Alliance for High-Speed DSL Access

Strategic Insights -

America Online and Bell Atlantic announced a significant partnership to provide high-speed Digital Subscriber Line (DSL) access to AOL members, marking a major step forward in the development of broadband availability. The alliance, which began rolling out in the summer of 1999, aimed to make DSL technology available to 7.5 million homes by the end of 1999, with plans to nearly double this number to over 14 million by the end of the year 2000.

Key Takeaways:

  • America Online will offer Bell Atlantic's Infospeed DSL access as a premium upgrade for AOL members in Bell Atlantic's service area, starting this summer.
  • Bell Atlantic plans to make DSL technology available in areas covering 7.5 million homes by the end of 1999, with plans to nearly double this number to over 14 million by the end of the year 2000.
  • AOL members who take advantage of the DSL option will gain "always on" access to AOL, consistently high-speed access, and the ability to use their computer and telephone or fax simultaneously on a single phone line.
  • AOL will announce DSL pricing when the roll out begins this summer, with the DSL upgrade expected to cost members less than $20 extra per month.
  • The companies plan to co-market to AOL members with DSL access, with Bell Atlantic offering optional telecommunications products and services.

Statistics:

  • 14 million homes: Number of homes that will have access to DSL technology by the end of the year 2000.
  • 7.5 million homes: Number of homes that will have access to DSL technology by the end of 1999.
  • 20 times faster: DSL access is expected to be faster than standard 28.8 kbps modems.
  • Less than $20 extra per month: The expected cost of the DSL upgrade for AOL members

Sources:

  • Business Wire, "Bell Atlantic and America Online Announce Strategic Alliance for High-Speed DSL Access" (January 13, 1999)
  • Bell Atlantic press release, "Bell Atlantic and America Online Announce Strategic Alliance for High-Speed DSL Access" (January 13, 1999)