AT&T will raise DSL prices outside the former BellSouth territory...
AT&T will raise DSL prices outside the former BellSouth territory, a spokesman confirmed Tuesday. Subscribers to the three lowest-tier AT&T plans will pay $5 more monthly, he said. Prices rose “to better reflect the value of our broadband service…
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and market conditions,” he said. Charges won’t increase for U-verse plans, a $19.99 naked DSL plan or a $10 promotion for new AT&T DSL customers, he said. Increases take effect Feb. 16 for new customers and in March for current subscribers, he said. AT&T may be raising prices “to take advantage of customer inertia and customer frugalness to support revenues,” said Moody’s analyst Dennis Saputo in an interview. “Customers with these DSL speeds are probably quite satisfied with the speed or else they would have gone to cable which generally offers much higher speeds,” he said, and AT&T may have decide those customers would swallow a $5 rise. But it isn’t a good idea, he said: “The $5 increase will push some customers to cable and once they go they are unlikely to ever return, especially if the cable company is upgrading its service offerings.”