IP Democracy: AT&T to Offer $12.99/Mo. DSL Service

AT&T (formerly SBC) is slated to announce tomorrow that it will offer a DSL service priced at $12.99/mo., a new low for high-speed service. The tier, called DSL Express, will offer download speeds of up to 1.5 Mbps and will be available to only new customers — and that bottom-scraping price will be good for only one year. After that, the price reverts to $29.99/mo.

AT&T will also launch a “pro” tier promotion, extending a 1.5 to 3.0 Mbps service for only $17.99/mo., another new low given the 3 meg speed. That price is only good for a year too.

This pricing gambit by AT&T is clearly an effort to spur DSL growth among the broadband late-bloomers, which is pretty much the only new customers that broadband service providers have left. It could also be a reflection of new pricing pressure being put on the market by AOL’s new broadband options.

AOL announced another broadband partner today — Charter Communications. The online giant is teaming with cable and DSL providers to offer an AOL-branded broadband service priced at $24.95/mo., lower than the typical $29.99/mo. service offered by SBC and Verizon, the two telcos that kicked off the broadband price war two years ago.

Posted by Cynthia Brumfield on February 2, 2006 5:01 PM to IP Democracy