Document text
US West expands Internet service The Associated Press DENVER -- Caught in a race with cable and telephone companies for computer users, US West Inc. on Tuesday announced plans to expand its high-speed Internet access service and cut the price by 25 percent. The move is a sign that competition is picking up between cable and phone industries, which both offer Internet access at speeds at least five times faster than a typical computer modem. US West itself was once a player in the cable TV industry, but decided to get out in order to focus on the telephone business. The cable unit it spun off last year, MediaOne, last week agreed to be acquired by AT&T Corp. as part of a the long-distance carrier's goal of delivering phone and other telecommunications services over cable TV lines. In the competition between cable and phone companies, the key is getting the high-speed Internet capability in place at an affordable price. "Our whole objective is to drive the price down to a consumer price level as fast as we can," said Joe Zell, president of US West's data networking unit. "The more that we're able to drive the cost of the service down, the more viable it becomes as entertainment in the home." US West cut its price from $40 a month to $29.95 a month for its basic digital subscriber line, which processes data at 256 kilobits a second, compared with 56 kilobits per second in a typical computer modem. For example, a large software package that takes about an hour to download with a 56K modem can be downloaded in about 10 minutes via a digital line, Zell said. For the line plus unlimited Internet service, US West cut the price from $60 a month to $47.90 a month, Zell said. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA