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IBM and Bell Atlantic Unveil Home Networking Alliance

Strategic Insights

— 2 min read

A significant shift in consumer behavior toward a more digitally integrated "e-lifestyle" is driving the partnership between IBM and Bell Atlantic, which will make it possible for customers to control various aspects of their homes, including lighting, entertainment, and security, using a PC or "smart" device. This innovative move, set to be announced today, comes as technology companies scramble to create a seamless networked package that incorporates various electronics. Officials note that the service, which is expected to be rolled out throughout the Bell Atlantic service territory, spanning from Maine to Virginia, will come with a price tag ranging from $1,200 to $1,500 for installation, along with additional access fees for high-speed Internet.

Key Takeaways:

  • The alliance between IBM and Bell Atlantic will enable customers to control various aspects of their homes, including lighting, entertainment, and security, using a PC or "smart" device.
  • The service will be available throughout the Bell Atlantic service territory, stretching from Maine to Virginia.
  • The price for installing the service will range from $1,200 to $1,500, with additional access fees for high-speed Internet.
  • High-speed Internet will be provided through Bell Atlantic's Asymmetrical Digital Subscriber Line (ADSL), which is about 25 times faster than a 56k modem connection.
  • The system's "killer app" will be Internet-on-demand, allowing users to access the Internet from any computing device in the house.
  • Locally, the alliance solidifies the battle lines between Bell Atlantic and Cox Communications, which has been marketing its own high-speed, fiber-optic Cox @Home Internet service since late 1997.
  • The service will involve having contractors from a Bell subsidiary wire a new home as it is being built, with possible retrofits of older homes but focusing on new home construction.
  • The partnership aims to move customers from an "analog lifestyle to an `e-lifestyle' " by providing the ability to get online even while the children are on the phone.

Statistics:

  • The price for installing the service will range from $1,200 to $1,500.
  • High-speed Internet will be provided through Bell Atlantic's Asymmetrical Digital Subscriber Line (ADSL), which is about 25 times faster than a 56k modem connection.
  • The ADSL standard allows multiple conversations or data connections over a single phone line.
  • Locally, Cox Communications has been marketing its own high-speed, fiber-optic Cox @Home Internet service since late 1997.
  • Bell Atlantic's service will be available throughout its service territory, spanning from Maine to Virginia.

Sources:

  • IBM and Bell Atlantic press release (no date specified)
  • "Cox @Home Internet Service" (Source: Cox Communications, late 1997)

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