Thursday, October 05, 2006

at&t DSL pricing

DSL Prime on AT&T DSL rates: "Customers must apply for new rates $15-$35, or $45-55No need for contract, 2-3 times as high without AT&T phoneAT&T now offers some of the best rates for broadband in the U.S., although yet again with surprising details. The press release says “New residential AT&T Yahoo! High-Speed Internet customers only” but AT&T spokesman Fletcher Cook tells me any customer who asks can get the new rates. 768/384 is $15, 1.5/384 is $20, 3.0/512 $25, and 6.0/768 $35. This continues the attack on the remaining dial-up base after disappointing net gains in the previous quarter. AT&T churn has been high although the company does not provide a specific figure, partly because of “introductory offers” that get customers mad when they find how high the true rate is. In practice, most folks pay rather than change service, but angry customers aren’t good for any company. DSLR, as usual, had the story first. Customers who don’t take the bundle with an AT&T phone line have unchanged prices of $45-$55 (less $5 if Cingular customer) That’s literally 2 or 3 times as high as the cost in the bundle, and in many cases means they must pay more for a DSL line without phone than they would if they took both services. The availability of “nekkid” DSL at a competitive price was a major part of California Commissioner Chong’s argument for deregulation of phone rates. I wrote Ms. Chong asking for a comment on the pricing disparity, but hadn’t heard back at press time. France and Japan continue to be much cheaper, with service typically over 10 meg for effective prices of $20-30. But cable in the U.S. typically costs $40-50 for speeds comparable to AT&T. BellSouth is much higher, at $25-47, while Qwest is $32-55. Verizon is typically slightly above SBC’s rates." Telephony mag has more on the 4 tiers of prcing.

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