Pac Bell and MCI offer Internet

by Vernon Keenan

Cyberspace Today

Las Vegas (March 31) - The NetWorld+Interop trade show set the scene for the first skirmish between Pacific Bell and MCI for California Internet users, who make up nearly 25% of the U.S. Internet market. The telecom giants promised affordable and secure services for business and consumers alike.

Pacific Bell

San Francisco-based Pacific Bell said it would focus on producing an integrated result for business customers. "Unlike most other Internet access providers, we're offering our customers a complete set of access, hardware, software and transport services so they can take full advantage of the tremendous potential of the Internet for worldwide communications and electronic commerce," said Dave Dorman, president and chief executive officer of Pacific Bell.

Sun Microsystems and Cisco Systems will supply pre-configured network hardware and security software designed to work with Pacific Bell's services. Pacific Bell also joined the large group of vendors who have enlisted Netscape Communications to support secure World Wide Web transmissions.

Pacific Bell officials said a $525 full-time Internet connection that includes system integration services would be available in May. Presumably, this entry-level business service will use a Frame Relay connection to access the Pacific Bell network. Personal dial-up services will be available sometime after September, 1995. Services will initially be sold in the San Francisco Bay Area, Sacramento, Los Angeles and San Diego with the rest of the state scheduled to on-line in 1996.

Pacific Bell has not disclosed the monthly price for their personal Internet service, but indicated it will be "competitive." Internet users currently spend from $20 to $40 per month for Internet connectivity. Several Internet service providers offer customers unlimited access free of hourly connect charges.

MCI

The Washington, DC-based MCI Communication has been priming the market for the Internet with it's Gramercy Press television campaign. "When people think of the Internet, we want them to think of MCI," said Ron McMurtry, director of Network MCI marketing.

With the service, users will be able to dial a 1-800 number from anywhere in the country. By April, MCI customers will be able to access it via local numbers in 65 cities, said MCI officials.

To launch the service, MCI will charge $19.95 a month for full unlimited service. After June 30, users will be charged $9.95 per month for the first five hours and $2.50 for each additional hour with an additional charge for 1-800 dialers of $6.50 an hour at anytime. The internetMCI software retails for $39.95 while advance e-mail software will run $24.95.

McMurtry said the service will support access at 28.8 Kbps, the fastest dial-up speed available on regular telephone lines. In addition, MCI will offer digital access via ISDN at 56.6 Kbps plus ultra high speed offerings.

MCI also debuted an electronic marketplace, dubbed internetMCI, based on the World Wide Web using Netscape's secure information transmission technology. Focusing on content, MCI also announced that OfficeMax, a national office supply superstore, would offer it's catalog through the service.

ISPs React

Bay Area Internet Service Providers reaction to the Pacific Bell and MCI announcemnts ranged from a cheerful welcome to a new competitor to cries of foul play.

"We welcome the competition. The more people you get on the Internet the better. Pac Bell and MCI are going educate everyone about our services," said Rich White, vice president of operations for Best Communications of Mountain View. Best is among over 20 small Internet service providers located in the San Francisco Bay Area who offer Internet services for individuals and small businesses. "People will come to us to get the premium services such as a custom domain name and network that support a World Wide Web presence," continued White. White isn't worried because there are plenty of new customers to go around. The growth experienced by companies such as Best is as extraordinary as the growth of the Internet itself, which is currently doubling every 18 months according to data published by the National Science Foundation.

Other providers are not so sanguine. "There is a direct conflict of interest," said David Beckmeyer, owner and operator of Beckmeyer Development Technology, a Walnut Creek-based Internet service provider. Citing Pacific Bell's monopoly on local telephone service Beckmeyer added in a message posted on the Internet that "they own the [telephone] lines we will use to compete with them."

Where's AT&T?

Pacific Bell is the first Baby Bell that has announced Internet service. One would assume that AT&T and Sprint would be on the heels of MCI. Will Pacific Bell's move help long distance companies force the deregulation of local telephone service? Internet consumers have a lot to ponder.

For more information contact Pacific Bell at http://www.pacbell.com/ and MCI at http://www.internetmci.com/.

vern@cybertoday.com