AOL to Expand High-Speed Access Service Into California

America Online will extend its high-speed Internet access to members in California and six other states served by SBC Communications by the end of this year, the companies said Thursday.

The high-speed service uses a technology called asymmetric digital subscriber line, or ADSL. It allows for much faster Web surfing, constant and reliable connections, and the ability to access the Internet while talking on the phone or using a fax machine.

AOL customers in California who are also served by Pacific Bell will be able to sign up for the service this fall if the phone company offers ADSL in their neighborhoods. PacBell, which is owned by SBC, currently offers the high-speed service to about 2 million homes and businesses and plans roll it out to an additional 3.9 million customers by the end of the year.

Dulles, Va.-based AOL said the high-speed service will likely cost users an extra $20 a month. Pacific Bell sells ADSL for $39 a month.

SBC customers in Texas, Missouri, Oklahoma, Arkansas and Kansas will also be eligible for the high-speed AOL access this fall, with customers in Nevada following later in the year.

The deal between the nation’s biggest online service provider and San Antonio-based SBC follows a similar deal in January between AOL and the East Coast phone company Bell Atlantic. The two partnerships allow AOL to offer the high-speed service to about 45% of the country.

In New York Stock Exchange trading Thursday, AOL shares rose $3 to a record $95.81 and SBC shares gained $1.63 to $53.31.