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AT&T to raise broadband prices

By Ed Oswald, BetaNews

February 5, 2008, 2:13 PM

The $5 price hike will affect the states where it acquired new customers through its buyout of BellSouth.

The change will not affect new customers signing up for the company's slowest tier, which offers download speeds of 768 kbps. But current customers on the three slowest tiers will see their monthly rate go up.

Currently AT&T charges $14.99 per month for the 768kbps, $19.99 for the 1.5mbps, and $24.99 for the 3mbps tiers. With the change, effective in March, these rates will change to $19.99, $25, and $30 respectively.

Most of AT&T's 14.2 million high-speed customers are on the 1.5mbps plan, it said.

The $10 offer for new customers and $19.99 standalone DSL options will not be affected, nor will the price change for its U-Verse TV service which relies on the DSL network for data purposes.

CEO Randall Stephenson seemed to suggest in comments to the media that a general softening of the overall DSL market due to the economic slowdown made price hikes necessary. Even so, AT&T is confident that it is still able to attract customers even with the higher prices.

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By bousozoku

posted Feb 6, 2008 - 3:20 PM

BellSouth/AT&T has been charging $32.95 for 1.5 Mbps and $37.95 for 3.0 Mbps in Floriduh so things are still cheaper in other AT&T areas. I doubt they'll go down in Floriduh but that would be a nice surprise.

Where is that naked DSL options that's supposedly available?

Score: 0

By DatabaseBen

edited Feb 6, 2008 - 3:54 PM

yeh, i checked on naked dsl.

initially at*t denied having such a service. but my complaint to the public utilities commission forced at*t to admit they did have naked dsl service available.

unfortunately, the price that at*t provided for simply dsl/naked dsl was more than the cost for the bundled (dsl + at*t telephone).

basically, i could pay 55 bucks for naked dsl or pay 5 dollars less and have both dsl and a active telephone connection/service.

i filed a complaint with the fcc but no response.

i filed another with the public utilities commission but they could not or would not do anything about at*t manipulation to force customers into having their telephone services.

to me it only made good sense to pay 5 dollars less and have both dsl and telephone for fax and voice.

Score: 0

By Zee333

posted Feb 6, 2008 - 2:18 PM

Good thing about the UK is they dont let this kind of thing happen, there are so many providers to pick from where ever you live and the government don't let one provider have exclusive access to one area.

Score: 0

By DatabaseBen

posted Feb 6, 2008 - 10:52 AM

AT&T like cable companies bait customers with a low rate. Then they raise the prices.

The excuse AT&T provides for raising rates is invalid, since 90% of broadband is automatically managed by computers. And computers care less about recession.

The question is if AT&T can get away with increasing rates instead of decreasing them due to market saturation.

If AT&T feels that the customers are financially responsible to help AT&T float through the recession, while the customers cannot, then what will happen when customers simply cancel their services all together.

A new question would be, is there an alternative for customers to switch to another broadband service provider?

Score: 0

By Galway

posted Feb 5, 2008 - 4:59 PM

WOW ... dread to think what they would charge for my connection ?

http://www.speedtest.net/result/230915942.png

And even this was while downloading and others connected to the network. Seams there is a distinct lack of choice, with some people unable to get another provider in the US. In the UK, we can choose from hundreds of providers and so there is always a better deal to be had.

Score: 0

By paschott

posted Feb 5, 2008 - 3:56 PM

Meanwhile, Verizon continues to roll out FIOS to select areas while AT&T tries to figure out who may or may not get U-verse. I think the idea of "attracting customers" is more due to their monopoly in the areas they service. I'd rather pay them $50 for basic + Internet, but it's getting closer every day.

I hate not being able to choose someone else to provide my last mile. I'd switch to Verizon in an instant to get those FIOS speeds and integrate everything into one package.

Score: 0

By Jahmekan

posted Feb 5, 2008 - 3:41 PM

Wicketr *tongue planted firmly against cheek* what are you talking about? The AT&T told the goverment before the more that they would give everyone choices and that would keep the price down. Why should they not take them at their word? They are not in this for the money...they want to make sure we have broadband access at a good price. *smiles*
I saw this coming from a mile away and so did the elected officials in government. It happen with all deregulation and mergers. The customer get the shaft and most of us cannot do anything about it. Cable will be on the move too, it's just a matter of time. I wonder if my boss will give a EOY bonus for broadband inflation?

Score: 0

By bourgeoisdude

posted Feb 5, 2008 - 3:38 PM

"Even so, AT&T is confident that it is still able to attract customers even with the higher prices."

Unfortunately, there aren't many choices in this area. I hope Verizon FIOS gets here soon...

Score: 0

By rwrife

edited Feb 5, 2008 - 3:18 PM

Uh? I just signed up for service in a "bellsouth-area" and I'm paying $33 for 1.5mbps.

Score: 0

By wicketr

posted Feb 5, 2008 - 3:05 PM

Got to love the lack of choices and the forced price increases. AT&T is a monopoly. Everyone saw they were going to raise rates whenever the hell they felt like it. Why? Because they can. The AT&T / Bellsouth merger never should have happened. Thank you US government for this helping hand of screwage that you've done for us.

Score: 0

By xyzcb1

posted Feb 5, 2008 - 4:35 PM

Soon, we will see a AT&T and Verizon merger. So we back to the 80s again.

Score: 0

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