AT&T: U-verse gets speed boost, broadband customers get free Wi-Fi

AT&T announced today that its U-verse fiber-to-the-node Internet service will begin offering more bandwidth and higher speeds to top-tier subscribers, and free Wi-Fi hotspot connectivity to all of AT&T's broadband customers.

The AT&T Yahoo! High Speed Internet Max tier will cost $55 a month when bundled with U-verse TV, and will now have downstream speeds of up to 10 Mbps, and upstream speeds up to 1.5 Mbps.

Broadband customers, no matter which package they choose, will now also be given free Wi-Fi connectivity at the over 10,000 AT&T hotspots nationwide. Free Wi-Fi access was originally provided only to the company's highest speed subscribers last year, but now the offer is extended to all new and existing customers.

Since a qualifying broadband plan is needed to obtain the free AT&T Wi-Fi connectivity, this offer appears to be incentive for iPhone users to expand from just cellular plans to AT&T broadband plans as well. After all, the iPhone -- reported to be AT&T's most popular handset in Q4 2007 -- is readily compatible with those very hotspots. It could substantially increase AT&T's broadband subscriber base if even a fraction of iPhone users added broadband connectivity to their services.