BellSouth Enters High-Speed Internet Market with ADSL Service

Strategic Insights -

BellSouth Corp. is preparing to offer high-speed Internet access over telephone lines through its ADSL (asymmetric digital subscriber line) technology, which will start rolling out in the summer. The service will first be available in cities such as New Orleans, Atlanta, and Birmingham, and will be in 30 markets by the end of next year. This move will pit BellSouth against existing high-speed Internet providers, including MediaOne and Comcast, which offer service via cable modems.

Key Takeaways:

  • BellSouth will offer ADSL service at a cost of $50 per month for customers who already subscribe to its "complete choice" plan, and $60 per month for others.
  • Users will also be charged one-time fees of $200 for equipment and $100 for installation.
  • The ADSL service will be capable of transmitting 1.5 megabits of data per second, 30 times faster than today's fastest consumer modems.
  • Cable modems are currently faster, with speeds up to 30 megabits per second, but ADSL does not require an upgrade in phone lines, only equipment installation.
  • Approximately 260,000 of metro Atlanta's 1.3 million phone lines will be offered ADSL this year, with more to be offered next year.
  • Only about 75% of phone lines in BellSouth territory can handle ADSL, and the technology only works for residents within 18,000 feet of one of the over 80 BellSouth central offices in metro Atlanta.
  • MindSpring Enterprises, the largest ISP in the Southeast, intends to offer ADSL service to its users.
  • BellSouth hopes to eliminate the need for a technician's visit by next year, as newer computers may come with built-in ADSL modems.

Statistics:

  • 1.3 million: Number of phone lines in Metro Atlanta
  • 260,000: Number of phone lines that will be offered ADSL this year
  • 30 markets: Number of cities where ADSL service will be available by the end of next year
  • 80: Number of BellSouth central offices in metro Atlanta
  • 18,000 feet: Maximum distance from a BellSouth central office for ADSL service to work
  • 1.5 megabits: Speed of ADSL data transmission per second
  • 30 megabits: Maximum speed of cable modems

Sources:

  • "BellSouth sets speed for Internet access." The Atlanta Journal-Constitution, no date provided.
  • BellSouth Corp. official press release, no date provided