America Online and SBC Communications to Offer High-Speed
Upgrade to AOL Members
AOL to Utilize SBC's DSL High-Speed Access for Members in
Pacific Bell, Southwestern Bell and Nevada Bell Regions
SBC's DSL Internet Service to be Available to 8.4 Million
Homes by End of 1999
Dulles, Virginia and San
Antonio, Texas, March 11, 1999
America Online, Inc. [NYSE: AOL], the world's leading
interactive services company, and SBC Communications Inc.
[NYSE: SBC], a global leader in the telecommunications
industry, today announced a strategic alliance to provide
high-speed connectivity to the AOL service through SBC's
Asymmetrical Digital Subscriber Lines (DSL).
Continuing to build on both companies' commitment to offer
high-speed access options for their customers, America Online
will use SBC's DSL to offer a premium upgrade this fall for
AOL members from areas where SBC companies Pacific Bell and
Southwestern Bell provide DSL service, including California,
Texas, Missouri, Oklahoma, Arkansas and Kansas. The agreement
also includes Nevada Bell, which is expected to deploy DSL
service later this year.
Today, SBC makes DSL available to two million homes. SBC
plans to increase DSL availability to 8.4 million homes by the
end of 1999 and to continue expanding its deployment in the
coming years. SBC's DSL upgrade will provide loop-qualified
AOL members with high-speed bandwidth to their personal
computers over existing telephone wires. SBC's DSL access will
allow AOL members to connect to the Internet at speeds up to
1.5 Mbps, more than 50 times faster than with a standard 28.8
Kbps analog modem.
In addition to high-speed access, AOL members who take
advantage of the DSL upgrade option will:
- Gain "instant on" access to AOL, as no dial-up is
required for DSL users because they are always connected;
- Be able to use their computer at the same time as a
telephone or fax over a single phone line;
- Be assured of consistently high-speed access because DSL
dedicates a broadband connection to each individual user;
and
- Experience broadband-enhanced multimedia and other
services.
America Online will announce pricing for SBC's DSL upgrade
when the rollout begins. The DSL upgrade is expected to cost
AOL members approximately $20 extra per month.
"SBC is moving fast to meet customer demand for bandwidth.
Our agreement with AOL to provide DSL through its powerful
distribution channel is yet another step we're taking to make
high-speed Internet access available and affordable to
customers," said Royce Caldwell, President, SBC
Operations.
Mr. Caldwell added: "We are delighted to be working with
AOL, the world's leading interactive services company, to
offer SBC customers with another way to enjoy the benefits of
high-speed Internet access. It will soon be easier for
millions of AOL members who live in our territories to access
AOL, surf the Internet, download files and shop from home at
speeds much faster than they do today."
Bob Pittman, President and Chief Operating Officer of
America Online, said: "By partnering with a global
telecommunications leader like SBC, AOL is taking yet another
major step forward in delivering broadband upgrade features to
our members. Working together, SBC and AOL will make DSL
upgrades affordable and convenient for our members in
California, Texas, Oklahoma, Missouri, Arkansas, Kansas and
Nevada, and combined with AOL's DSL agreement with Bell
Atlantic announced in January, will allow AOL to offer our
members DSL upgrades in 21 states."
Mr. Pittman continued: "As new technologies become ready
for primetime, AOL is committed to providing our members with
those new features that will enhance their online experiences.
With our growing membership base, we are in the best position
to transform broadband technologies to mass market realities.
By partnering with telecommunications leaders like SBC and
Bell Atlantic, we are delivering on that promise for our
members and enhancing the progress of this new medium."
Portions of the agreement are subject to the FCC's review
of ADSL tariffs that Pacific Bell and Southwestern Bell
Telephone Company will file for volume purchasers.
About SBC Communications, Inc.
SBC Communications Inc. (www.sbc.com) is a global leader
in the telecommunications industry, with more than 37 million
access lines and 6.9 million wireless customers across the
United States, as well as investments in telecommunications
businesses in 11 countries. Under the Southwestern Bell,
Pacific Bell, SNET, Nevada Bell and Cellular One brands, SBC,
through its subsidiaries, offers a wide range of innovative
services. SBC offers local and long-distance telephone
service, wireless communications, data communications, paging,
Internet access, and messaging, as well as telecommunications
equipment, and directory advertising and publishing. SBC has
approximately 129,000 employees and its annual revenues rank
it in the top 50 among FORTUNE 500 companies.
About America Online, Inc.
America Online, Inc., based in Dulles, Virginia, is the
world's leader in branded interactive services and content.
America Online, Inc. operates two worldwide Internet services:
America Online, with more than 16 million members; and
CompuServe, with approximately 2 million members. America
Online, Inc. also operates AOL Studios, a leading builder of
Internet brands for new market segments. Other branded
Internet services operated by America Online, Inc. include
AOL.COM, the world's most accessed Web site from home; Digital
City, Inc., the No. 1 branded local content network and
community guide on AOL and the Internet; AOL NetFind, AOL's
comprehensive guide to the Internet; AOL Instant Messenger, an
instant messaging tool available on both AOL and the Internet;
and ICQ, an instant communication and chat technology on the
Internet.
This press release contains forward-looking statements
within the meaning of the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. These
statements address the timing of deployment, availability, new
technology and pricing and benefits of DSL service. The
forward-looking statements are based on management's current
expectations or beliefs and are subject to a number of
uncertainties and other factors (and uncertainties) that could
cause actual results to differ materially from those described
in the forward-looking statements. See AOL's and SBC's
respective Annual Reports on Form 10-K, 10-Q's and other
public filings for additional information.
SBC-News Center
