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AOL, Gateway in DSL trials
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January 19, 2000: 10:21 a.m. ET
Companies to demonstrate high-speed, always-on Internet access
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NEW YORK (CNNfn) - Climbing on the broadband wagon, America Online and Gateway disclosed plans Wednesday to launch high-speed Digital Subscriber Line (DSL) access to customers in two trial markets.
The companies will conduct hands-on demonstrations of AOL Plus via DSL in Timonium, Md., and San Diego, Calif., from local Gateway (GTW) Country stores. The trials are an expansion of an earlier alliance between the companies announced in October 1999.
"This is a great step for AOL," said Joe Laszlo, an analyst at Jupiter Communications. "There have been similar deals between companies such as Microsoft (MSFT) and RadioShack to introduce DSL to consumers. This is a good way to build awareness."
DSL broadband access allows users, via telephone lines, to access the Internet at speeds up to 20 times faster than a standard 28.8 modem and provides an "always-on" connection. Internet users also can remain online while using the telephone or faxing.
Jupiter's Laszlo said Wednesday's announcement is somewhat surprising, given AOL's proposed merger with Time Warner, the number two cable company in the U.S. and its own high-speed Internet offerings via cable.
"It's interesting this announcement comes so soon on the heels of the Time Warner deal," said Laszlo. "One of the synergies we see between AOL and Time Warner is TW giving AOL access to their cable." Time Warner is the parent comp-any of CNNfn.
"While this is unexpected, it indicates that AOL is remaining technologically agnostic. But I wouldn't expect AOL, if they expand DSL trials further, to compete in the same markets as Time Warner," Laszlo said.
AOL (AOL) also plans to introduce new, enhanced multi-media features, including video and audio content and games via the AOL Plus DSL service. 
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