Broadband headed for price war?
SBC Communications, the second largest phone company in the U.S., upped the ante on Wednesday in the battle against cable companies. The company will now offer new customers DSL Internet access for $14.95 per month. This is cheaper than Internet dial-up service from AOL.
Now the big question is how will the cable companies respond? So far, cable, which still has about 59 percent of the broadband market, has held its pricing model steady offering services between $30 to $50 a month depending on the package chosen. But as the Baby Bells--namely SBC and Verizon--get more aggressive on pricing, they could decide to start slashing prices, too. What a beautiful day that would be for consumers!
Unfortunately, SBC's latest promotion is only available for new customers. It's definitely a nice way to entice new subscribers, but what about existing loyal customers? They won't be getting the same deal. I guess SBC doesn't care much about them.
Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies. E-mail Maggie.
