Copyright 2002 The Buffalo News  
Buffalo News (New York)
August 3, 2002 Saturday, FINAL EDITION
SECTION: BUSINESS, Pg.E-1

LENGTH: 369 words

HEADLINE: LOCALNET SELLS HIGH-SPEED SERVICE ON TIME WARNER LINES

BYLINE: FRED O. WILLIAMS; News Business Reporter

BODY:
LocalNet, an Internet on-ramp company in Williamsville, is selling high-speed service over parts of Time Warner's cable network, putting it in the forefront of the "open access" movement for shared use of cable television lines.

"We're the first local (Internet) provider to have access to Time Warner's system," LocalNet president Marc Silvestri said.

Starting July 26, LocalNet began offering high-speed service in a territory that includes 2 million Time Warner cable households. The area includes Syracuse, Binghamton and Rochester and extends into parts of Western New York.

The addition of LocalNet gives Time Warner customers a choice of four cable Internet services, including nationwide provider EarthLink and two Time Warner-owned services, Road Runner and AOL Broadband.

The Williamsville company charges $43.95 a month, compared to $44.95 for EarthLink and Road Runner and $54.95 for AOL.

The launch of the shared service comes after a review by the Federal Trade Commission concluded in February.

"The FTC intent was to have us compete with Time Warner," Silvestri said. "However I would characterize it more as a partnership."

Time Warner installs cable-modem equipment for LocalNet customers and collects payments. LocalNet sets its own price for the service, paying Time Warner an undisclosed portion of sales in return for the use of cable lines and equipment.

Most cable companies sell only their own brand of Internet access over their system. Adelphia Communications, the main cable provider in Western New York, doesn't share its wires with other Internet providers.

LocalNet's deal with Time Warner gives it a foothold in the market for high-speed Internet. The company's main business is dial-up Internet service, with 55,000 customers across eight states, Silvestri said.

Other area Internet providers are also branching into the market for fast access, as growth in the dial-up market slows.

BuffNET in West Seneca is launching high-speed DSL service over telephone wires for $59.95 a month for residential customers, giving its 6,500 dial-up customers an upgrade option, sales director Scott MacDonald said.

e-mail: fwilliams@buffnews.com

LOAD-DATE: August 4, 2002