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AT&T plans rate increase for broadband service, hopes customers will be willing to pony up cash for higher rates

The state of broadband in U.S. was described in an in depth analysis at DailyTech last year as "pathetic" and "disgraceful".  The industry is plagued with poor service quality, substandard data rates, zealous attempts to limit file-sharing, and most of all high prices.

Fittingly, San Antonion-based AT&T, notorious for at one time suspending user's right to free speech, announced a rate hike.  The rate hike, a $5 flat rate increase to subscribers' current monthly fee, may be financially lucrative for the company, but is likely to make no one else very happy.  The increase, announced Monday by a company spokesman will go into effect in March.  All states besides those acquired by the buyout of Bell South will be effected.  Bell South operated in Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee, so these states are exempt.

There are some other notable exceptions to the increase.  The increase, while applying to the vast majority of accounts, only applies to the three slowest connections speeds; 768 kbps, 1.5 Mbps, and 3.0 Mbps.  The 1.5 Mbps service tier is AT&T's most used, with 14.2 million subscribers.  Most of these subscribers will be hit with the rate increase.

New subscribers to the 768 kbps service will be exempt, but most people don't choose this option.  Also exempt are customers who signed up under special promotion packages.  These customers are exempt for the remainder of their promotion's term. 

AT&T informed customers of the increase by email beginning last week.  AT&T spokesman Michael Coe states that the increase is to, "to better reflect the value of our broadband service."

AT&T has been having a tough time financially, ever since Chairman and Chief Executive Randall Stephenson announced that he saw weaknesses in the current consumer broadband and cell phone markets.   AT&T has also recently announced a controversial new filtering plan to snoop on consumer's use and block "rogue" file sharing traffic.

The consumer internet world has been having a tough time in the U.S. and abroad of late.  In France, the government threatens an internet tax which would raise prices.  In the U.S. domain tasters exploit the system to take domains and ad-revenue from legitimate users.   Meanwhile, Time Warner recently announced an even more scary proposal for the consumer broadand industry -- usage based billing schemes.  Normal consumer broadband is speed limited, but has no monthly bandwidth limit, to the delight of many downloaders.  Unfortunately, Time Warner labels these individuals "devil users" and looks to curb a feeling of entitlement to "all you can eat" internet.


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RE: welll wahhhh!!!
By zsouthboy on 2/6/2008 10:48:46 AM , Rating: 2
"Sure Korea and Japan have 20 Mbit and 100 Mbit service, they also have a huge population concentration in urban areas. What most refuse to realise though is that 100Mbit rate in korea ain't happening on granpa Kim's mountain farm, but only in urban areas just like here in the U.S."

Try again - in our most densely populated areas here in the US, we DON'T have 20+ Mb, high-competition, low prices.


RE: welll wahhhh!!!
By masher2 (blog) on 2/6/2008 11:05:07 AM , Rating: 2
> "in our most densely populated areas here in the US, we DON'T have 20+ Mb..."

In many densely-populated regions in the US (New York/Tri State Area, Boston, etc), we have 30 or even 50 Mb/s connections available.


"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation














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