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February 5, 2008 9:02 AM PST

AT&T jacks up DSL price $5 per month

by Marguerite Reardon
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AT&T has increased the price of its DSL service by $5 a month as the company faces slowing broadband growth, the company confirmed Tuesday.

The pricing change will apply to existing and new customers in AT&T's original 13-state territory who subscribe to one of AT&T's three lower-speed tiers of service.

Customers subscribing to AT&T's new U-verse service will not see a change in their bill, nor will customers who have service in the old BellSouth region. The company is not changing pricing on the $10 and $19.95 standalone DSL services that AT&T is required to offer as a condition of its merger with BellSouth. AT&T's Elite subscribers, who get download speeds of 6Mbps also will not see a price change.

AT&T's move to jack up pricing on its DSL service comes a month after CEO Randall Stephenson said that the weak economy was affecting the company's DSL subscription numbers. A spokesman for the company said the price hike was done to "better reflect the value of the broadband service and market conditions."

"Even with this adjustment, our pricing still beats cable's standard pricing across the majority of our markets," AT&T spokesman Brad Mays said in an e-mail. "We're confident that customers will see the value in the service and that we'll continue to grow our customer base."

Here is the breakdown on the pricing changes for AT&T's DSL service:

Bundled with home phone:

• Basic (768Kbps): $14.99 to $19.95

• Express (1.5Mbps): $19.99 to $25

• Pro (3Mbps): $24.99 to $30

• No change to Elite (6Mbps): $34.99

AT&T DSL Direct (standalone):

• No change to Basic (768Kpbs): $19.95

• Express (1.5Mbps) : $23.99 to $29

• Pro (3Mbps):$28.99 to $34

• No change to Elite: $38.99

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.
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Reverse thinking
by tekwiz4u February 5, 2008 9:24 AM PST
If they want to grow the subscription base, wouldn't it make more sense to LOWER it $5.00!?

DUH!!....
Reply to this comment
Well, you don't know the rules of economics
by fredtheviking February 5, 2008 10:24 AM PST
It may not have been a good PR move, but I am sure it made perfect sense for thier pocket book. I am sure they even consider the potential loss of business due to a consumer backlash. But at the end of the day, they are cheaper than cable. So, AT&T problably made a good long term decision. My bill is about $60 and I don't have a choice when it comes to Broadband connection. So, I am not personally crying for AT&T customers.
View reply
No guarrentee?
by zeroplane February 5, 2008 9:46 AM PST
I switched to Cable because DSL doesn't deliver on what is promised. If it were true that I could get 6Mbp/s for $39.90 I would switch in a heart beat. Comcast costs almost $50.00 a month for up to $4-8Mbp/s.

Unlike DSL I actually get 4-8Mbp/s my last DSl provider Qwest was charging me about $40/mth for 1.3Mbp/s down and 768kbp/s up. Never once did I get 1.5Mbp/s

This is false advertising!

You pay for 1.5Mbp/s but only get about 30Kbp/s on average.

Lame, very lame.
Reply to this comment
Know your units
by CmdrRickHunter February 5, 2008 11:36 AM PST
Please do not confuse units. 1.5mbps is closer to 150Kbps (the capitalization is important) 1.5 million bits per second at their end tends to equate to about 150 thousand bytes per second on your end.

How did you test your 30kbps? against a dslspeed test, P2P, or just trying to download files from websites. Bandwidth is affected by server load too.

I know I have a 640kbps DSL connection because my lines are HORRID, and I still get over 30Kbps regularly.
View reply
Elite - 6Mbps
by lordeagle February 5, 2008 10:31 AM PST
All has been said. God that's hilarious.

When are the US (and Canada) ever going to catch up with Europe in terms "broadband" speed?

I miss my 20Mbps connection I had back in France: EUR50 / month included a 20Mbps, TV over DSL and a VoIP line. Now I pay around $55 (CAD) just for cable Internet, no TV, no phone. Lol.

It's sad.

Note: granted 20Mbps is not accessible everywhere, but when you live in a city, close to the relays, then you get the awesome speeds.
Reply to this comment
10Mbps in US
by zgreenwell February 6, 2008 6:59 AM PST
I get 10Mbps download speeds at home. AT&T doesn't even offer its "elite" package in my area and wanted me to pay $45 for their lowest speed. I now pay $40 a month for the cable internet I have.
1.5 Mbit is barely broadband...
by NProszkow February 6, 2008 7:25 AM PST
I have RCN cable and my package is 20Mbit down and 2 Mbit up for $60. This is the best offer I have seen in the US for any broadband. It is hard to fathom people purchasing plans by a .5 Mbit incriment. $30 a month for 1.5 Mbit should be illegal.

I do not subscribe to their cable TV service, however. I choose to download my shows and watch them when I want and without commercials. (Which is where I see TV going in the near future).
AT&T jacks up DSL price $5 per month
by fldmail February 5, 2008 10:32 AM PST
I have been on DSL for the last three years and they just keep wanting you to up $5......there should be one price only for DSL.....:o(
Reply to this comment
Pro (3Mbps):$28.99 to $34
by weathersinc February 5, 2008 11:10 AM PST
I wish my plan only cost this much. I just recently switched from phone and 3MB to DSL direct 3MB. My DSL price went up $5 but there is no phone and taxes now. I would be happy paying $34 compared to my $42.95 that AT&T (Old BellSouth) charges me. I wish I could get 6MB service, but I guess I have to wait b/c they are upgrading everything in my area getting ready to launch U-verse.
Reply to this comment
Better value
by geognerd February 5, 2008 2:33 PM PST
FTA: "...better reflect the value of the broadband service and market conditions." If they really wanted to give a better value to the customers, they'd *cut* the price $5.
Reply to this comment
The day this happens, i'm going back to dialup
by tekwiz4u February 5, 2008 6:46 PM PST
In recent years, all I saw was an increase on DSL pricing with horrible speed from all carriers. Since these carriers will need a new revenue stream, sooner or later the phone companies will start phasing out telco (not completely of course), and switch to Internet services.

The day will come where the Internet will be the new phone charges we see on a bill. How many packets you use will be charged on usage, like how many minutes we use on a cell call. Imagine going over your packet limit and they freeze your account. Rollover internet minutes. Pay as you go internet. The list goes on...

Unlimited flat rate internet will go away for the average consumer. When that happens, I rather go back to my $20 dial up and just use my work computer for huge downloads. At least I wont be paying thru the nose for it.
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"Weak economy" my ass!
by Jim Hubbard February 6, 2008 12:16 AM PST
This is happening because of AT&T's greed. In a bid to increase the already sickening NET profits of ~$12 BILLION in 2007, AT&T is hoping into bed with the RIAA and others in deals that will net the company more money while limiting the use of the DSL service that customers pay to use.

The reason for AT&T's drop is because of AT&T's treatment of its DSL subscribers. They want to filter and "shape" and play internet cop when they should be looking out for their customers instead of pandering to Hollywood.

AT&T isn't the only game in town anymore. They'll have to reap what they sow with their customers just like everybody else.

AT&T!! You're getting what you deserve!
Reply to this comment
NOT A WISE DECISION ATT
by davimich1975 February 6, 2008 11:27 AM PST
This is a time where gas prices are crazy, food prices are up because of it. Our health insurance has tripled in the last few years. What do you think we will give up in this price increase? Food, Gas, our health, or internet. It is a no brainer. Hitting someone while they are already down is really low. Shame shame. This is sad. 5 bucks is enough to make lots of people drop your internet all together trust me.
BellSouth Prices
by tfreedman February 6, 2008 4:57 AM PST
BellSouth's prices are already higher than AT&T's new prices. 1.5
Mbs speed DSL is priced at $32.95/month.
Reply to this comment
Lousy service?
by afterhours February 6, 2008 7:01 AM PST
It can't possibly be because it is already overpriced (that they are
losing customers)? It can't be because they change the terms of
service of a contract and expect the consumer to swallow it? This
utility is becoming like insurance companies that will deny any
claim the first time through just to see if the sheep are asleep.
Baaaaaahh.
Bunch of crap
by ittesi259 February 6, 2008 7:39 AM PST
If they are gonna jack up my DSL rates, they should be required to spend that money to upgrade their equipment to provide me the same service all the new construction gets. 3 and 6Mbps is not avail at my house and I've been a customer over 7 years.
Reply to this comment
Unreal!
by sommer182 February 6, 2008 9:34 AM PST
When will this contry get tired of substandard speeds and service? Europe, Asia, most of the industrialized world all have much, much faster connection options. AND THEY PAY LESS FOR IT. Yes, I know taxes are higher and that those governments subsidize services with those tax dollars. But come on, get some real speed into this country. 5 Mbps is NOT all that fast for the money!!!
Reply to this comment
typical fascist corp-speak
by edzackly1 February 6, 2008 11:37 AM PST
you aren't buying enough, now we have to make it more expensive
Reply to this comment
DSL
by bobanavrin February 6, 2008 6:29 PM PST
FIOS is a Verizon product not at&t.
Reply to this comment
In protest all should downgrade the service to slowest SPEED.!
by ignavi February 6, 2008 7:40 PM PST
BELLSOUTH charge more for their service than price shown in the news. My monthly bill is $32.95. I have long term commitment, that will not protect my current price??

If their increase their prices I will definitely downgrade my service to the slowest and cheapest speed.

BY THE WAY>> THEY NEVER HONORED MY $125 CABLE REBATE>> THEY ARE ALL FALSE.

$5 per month = $60 PER YEAR.....
Reply to this comment
Even LESS worth it now
by dcomiskey February 7, 2008 10:09 AM PST
I'm a very unhappy AT&T DSL customer. I signed up for the Pro level, which guarantees UP to 3 Mbps. However, the minimum is 1.5kbps on that teir that they GUARANTE. So, of course, my speed avgs 1.6k, so they refuse to do anything about it. if you want the next level, you have to upgrade to their fiber-based U-Verse service, which is junk.

I made a huge mistake by giving up Cablevision internet for this and will be switching back soon. The money I saved per month is now less, but I wish just how badly the speed differential was between the two providers. It wasn't worth the savings (30Mbps vs 1.6...). Yeah, it's THAT drastic.
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