Pacific Bell Internet Debuts Fast, Reliable Dial Up Access Service In California With Unlimited Use For Under $20 A Month; Special Introductory Offer for New Customers: 30 Days of Free Unlimited Access

Business Wire, May 28, 1996

SAN FRANCISCO--(BUSINESS WIRE)--May 28, 1996--Promising to make getting and staying on-line as fast, easy and dependable as making a phone call, Pacific Bell Internet Services today began offering California consumers, small businesses and telecommuters unlimited access to the nation's most affordable and comprehensive dial up, high speed Internet service for under $20 a month.

To help achieve its goal of becoming the premiere provider of the broadest online experience in the state, the company also announced a planned alliance with America Online. AOL, the world's largest online service, offers compelling content in a variety of online communities and would be the first online service available through Pacific Bell Internet.

New Service Targets Key Population Centers; Uses "Plug and Play" Approach

Residents and small businesses in over 350 communities in four key regions of the state -- Sacramento, San Francisco, Los Angeles and San Diego -- now have immediate local dial-up access to the worldwide computer network at speeds up to 28.8 Kbps (Kilobits per second) for every connection through a local phone call. High-speed digital ISDN (Integrated Services Digital Network) access -- up to six times faster (128 Kbps) than the speediest analog modems on the commercial market today -- will be available in late June.

"This is by far the most aggressive and comprehensive market deployment of consumer Internet access service by any regional telecommunications provider in the nation," said Dave Dorman, president and chief executive officer of Pacific Bell. "Not only are we the first Regional Bell company to enter the dial up market in a big way, but we have an attractive, easy-to-use and affordable service that appeals to customers who want reliability, quality and access to content."

Pacific Bell Internet dial up users will enjoy a speed advantage over nearly every other Internet access service available on the market today. Unlike most other Internet service providers and online services, who are saddled with legacy networks that use many 14.4 Kbps or slower modem connection ports, every port in the company's network will support a connection up to 28.8 Kbps and higher. Users with 14.4 Kbps modems can connect to the Internet network at that speed.

Starting immediately, Pacific Bell Internet is available to 75 percent of the 8 million homes, 80 percent of the 1.2 million small businesses and 75 percent of the 2 million telecommuters in California with dial-up access through a local phone call -- no toll charges -- over its Internet access network, Dorman said. And with planned network expansion, the service will be a local call for the Stockton and Fresno service areas later this summer. Other metropolitan areas of the state are planned to be completed by early next year.

Pacific Bell Internet Offers Two Affordable And Flexible Customer Pricing Plans

Unlike the "flat-rate" pricing plans of many other Internet service providers, Pacific Bell Internet offers flexible pricing that is more economical for most users, given how many hours the typical consumer spends online, according to Rick Hronicek, president of Pacific Bell Internet Services. All connection fees, including those for the interconnected Global Service Providers, are included in the following pricing options.

-- "Carefree Access Pricing" (CAP): customers receive 20 hours of use a month for $14.95 with additional connect hours available for 50 cents an hour up to a maximum of $19.95 a month. The plan will automatically save money when customers use less than 30 hours while keeping them protected at the $19.95 maximum during months of high usage.

-- Basic Access Pricing: offers users up to 10 hours of access time a month for $9.95 with each additional hour costing $1.

Both PBI pricing options give customers distinct advantages over traditional online services and other industry competitors like AT&T World Net and internetMCI, according to Hronicek.

"With flat-rate plans, most people spend more than they have to and get less for the product," Hronicek said. "With our plans, they get the best of both worlds by paying less during low use months and getting price protection on the high end so that they never pay more than they would with our competitors."

In fact, Pacific Bell Internet's pricing plans offer significant savings over AT&T and other providers. Customers who access the Internet more than 9 hours a month -- about 75 percent of all Internet users according to a recent Find/SVP survey -- would receive a lower price than either AT&T's "free" plan or its flat-rate plan. Pacific Bell Internet is waiving the one-time $14.95 set up fee and offering free, unlimited access for the first full month of service for customers who sign up between now and September 1, 1996.

In addition to fast, reliable and affordable Internet access, the service will include a free version of Netscape Navigator, Netscape's popular Internet client software customized for Pacific Bell Internet with simple, easy on-line registration (toll free 800 number), account servicing and convenient payment options via credit card or the monthly Pacific Bell phone bill. The company's Internet access service also will support other web browsers.