PAC BELL TO SOUP UP INTERNET ACCESS RIVALRY.

Byline: Phillip W. Browne Daily News Staff Writer

The battle for breakneck-speed of Internet access in the San Fernando Valley escalated Tuesday as Pacific Bell announced sharp price cuts for its service and network expansions that will make them widely available.

The announcement of lower-priced high-speed access - up to 200 times faster than 28.8k modems - comes at a time when cable company giants Time Warner and TeleCommunications Corp. are gearing up to launch high-speed connections via cable lines in the Valley this year.

With communications powerhouses now planning to offer the affordable connections, and several more expected to jump into the game soon, the winners will be consumers, experts say.

But as competition increases among companies trying to offer the best speeds for the lowest price, there will be industry casualties.

``The price wars among the big companies will surely impact smaller Internet companies. We'll probably see the smaller companies consolidating with the larger,'' said Stan Burns, CEO of Synergy Ventures Inc., a Woodland Hills Internet marketing company.

``But I think it's a positive trend that will expand Internet availability and use, and it is good for competition. In the end, the consumers are definitely the winners.''

Pacific Bell executives said 70 percent of their customers will be able to surf the Internet at 200 times the speed of a 28.8k modem by the end of the year - the largest data communications expansion ever in any state nationwide.

``There's a significant contest developing between Pacific Bell and the cable modem industry,'' said David Gallemore, executive vice president of SBC Communications Inc., Pacific Bell's parent company. ``But we enjoy the lead in terms of availability.''

The company's Asymmetrical Digital Subscriber Lines, will cost consumers $39 per month, and $49 if you use their Internet service. Businesses that need faster speeds can buy more powerful lines for $129 per month. There's a $200 installation fee, but that will be waived if a subscriber signs up for a one-year contract, company officials said.

``We're doing more in California than anyone to bring high speeds to consumers and unleash the power of the Internet,'' Gallemore said.

``California leads the nation for Internet usage because 35 percent of the traffic starts and ends here. We plan to have ADSL available to 3.7 million California residents and 900,000 businesses by the year 2000.''

Right now, ADSL service is available in 90 of Pacific Bell's regions, including Canoga Park, Van Nuys, Sherman Oaks, Reseda, North Hollywood and Northridge. By the end of the year they will have 255 offices online, which will allow connections for the entire Valley.

Pacific Bell said ADSL is faster, more secure, more reliable and more widely available that what the cable companies will offer.

``Our networks are known for our reliability in two-way communications and are much more secure, especially for businesses doing online transactions,'' Gallemore said.

David Auger, vice president and general manager of Time Warner's Valley operation, said he welcomes the competition and that the issues Pacific Bell have raised about cable modems are myths.

``It's just like Pac Bell to come out of the gates swinging and throwing sucker punches,'' Auger said, adding that both technologies face the same service issues. ``I have nothing bad to say about Pac Bell's service. The truth is there is more than enough of a market for competition. It's healthy.''

Time Warner's Road Runner service, expected to be available in the area this summer, has gained high reliability marks in its 10 markets, including San Diego, Auger said.

For more information about Pacific Bell's ADSL lines and availability, look them up on the Web at www.pacbell.com/products/business/fastrak/adsl.