Search:  

 
 
   News
newer
story category AT&T Drops DSL Price, But Not Really
As free Wi-Fi expands to include telco's slowest tier...
05:04PM Wednesday Sep 17 2008 by Karl Bode
tags: dsl · prices · business · AT&T Southeast · AT&T Midwest
AT&T is getting some press today (Atlanta Journal Constitution, San Antonio Business Journal) for reducing the price of their 768kbps DSL Lite tier from $19.95 to $14.95 in Southern markets. Interestingly, neither news outlet bothers to mention that you're already supposed to be able to order that same tier for $10, as a condition (pdf) of the AT&T BellSouth merger. Unfortunately for consumers, while AT&T was forced to provide the tier for two years, they were under no obligation to advertise it or make it easy to sign up for. CEO Randall Stephenson has previously denied that the $10 tier is hard to find, and says it isn't advertised because, well, it isn't all that good, and customers don't want it anyway:
"We haven't made it difficult to find. To be honest with you, that's not a product that our customers have clamored for. We still have $15 offers out there in the marketplace, even $20 offers, for 1.5 megabit speeds. Those are really kind of the minimum speeds that give a good user experience. So I don't want to necessarily offer up a product where the user experience is not what I would consider really state of the art. That $10 product is kind of in that mode."
There is some genuinely good news for 768kbps AT&T customers today: it looks like the free access to AT&T Wi-Fi hotspots has now been extended to you as well (it's $19.95 a month for non-subscribers). Free Wi-Fi had previously been restricted to almost every AT&T customer except those signing up for the slowest tier.

Related:
  1. AT&T Dry Loop 1.5Mbps DSL: $23.99
  2. 1.5Mbps/Wireless AT&T Bundle Everywhere By Year's End
  3. AT&T Raises Dial-Up Prices 60%
  4. AT&T Considers Usage-Based Pricing as BitTorrent Solution
  5. 18Mbps U-Verse
  6. More Specifics On AT&T's Cap Plans
  7. AT&T To Pay $17 Million For USF Over-Charging
  8. AT&T Looking For Femtocell Testers
Forums » AT&T Drops DSL Price, But Not Really
view: topics flat text 
Post a:

Dogfather
Altitude is your friend
Premium
join:2007-12-26
Laguna Hills, CA
·Cox HSI
·MegaPath
·Verizon FIOS
·Cox VOIP
·Verizon west (ex G..
·ViaTalk
·Time Warner VOIP
·RoadRunner Cable

That's how they lost their huge adds

They were getting close to 400K adds a qtr when they ran the budget DSL deals, flat smoking cable giants like Time Warner and Comcast by a wide margin. It was such a success that we all remember that they ran out of room in some COs for all the new customers signing up.

Then they and Verizon fell flat on their faces when they cranked up prices. The hidden tiers, which were required as conditions of mergers would do them good if people knew about them. It would grab dial up converts who don't give two squirts of piss about speed and allow the telcos to work on upselling those customers to other telco products.

Hell, why not just charge a trillion dollars for these services...then they wou'd only need one customer.

Merger prices

@bu.edu

Re: That's how they lost their huge adds

For those that don't want to search the PDf, the merger agreement prices for 768kbps are $19.95 for direct access (without a land-line phone)and $10.00 with a land-line phone. It is for new DSL customers only which includes, of course, existing dial-up customers.

Merger prices

@bu.edu

Re: That's how they lost their huge adds

I forgot to say that for those prices the modem is supplied and not charged for.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME

If AT&T wants to get those huge adds (i.e. poor college students), Have a $25/month 3Mbps ADSL w/o POTS service, and bundle in voice (VoIP !) and/or cellphone service.

Instead, they've been raising prices, stop offering VoIP service (w/o bundles on TV service, where available), etc.
AT&T just hasn't made it easy for a customer to want service.
--
Canada = Hollywood North

Dogfather
Altitude is your friend
Premium
join:2007-12-26
Laguna Hills, CA

Re: That's how they lost their huge adds

It's like they had a BOD meeting and asked, what can we do to stop customers from subscribing. Then did it.
jester121

join:2003-08-09
Lake Zurich, IL
·ViaTalk

Even better would be $1.99 per month -- they could lose even more money per customer. Sounds like a good business plan to me...

For $10 a month if a customer calls in for support it probably takes 6 months to recoup the expense. If people who buy dirt cheap connections also have old crappy computers, their ISP get saddled with a very unprofitable bunch of customers.

Dogfather
Altitude is your friend
Premium
join:2007-12-26
Laguna Hills, CA

Re: That's how they lost their huge adds

The reality is the data services division was profitable then. This round of greed will bite them in the ass.
jester121

join:2003-08-09
Lake Zurich, IL

Re: That's how they lost their huge adds

Divison? When did we shift to talking about divisions? I thought we were discussing tiers and customers?

Dogfather
Altitude is your friend
Premium
join:2007-12-26
Laguna Hills, CA

Re: That's how they lost their huge adds

You mentioned "losing money per customer". They never lost money per customer.
jester121

join:2003-08-09
Lake Zurich, IL

Re: That's how they lost their huge adds

Ah, I see where you're coming from. I mean individual customers paying $10/month is a losing price point.

Dogfather
Altitude is your friend
Premium
join:2007-12-26
Laguna Hills, CA

Re: That's how they lost their huge adds

I'm not sure that it is. Given the opportunity to up-sell, and the tie to overpriced POTS it sure looks like it would still be a net gainer for them. At $15 it was a big gainer for them.
jester121

join:2003-08-09
Lake Zurich, IL
·ViaTalk

Re: That's how they lost their huge adds

How do you figure? The cost of a DSL modem and a truck roll for the install means it requires many months to move a customer into the black. We're not talking Comcast subcontractors here, AT&T's a union shop and they pay good wages to techs.

People seem to have an idea in their head about how much something "should" cost (thanks in no small part to people like BBR's own Karl, who skews every news story to further his views and manipulates statistics or manufatures meaningless metrics to try to prove a point). When one's world view dictates that all corporations are inherently evil and out to screw the little guy, it's an easy trap to fall into, but it's not intellectually valid.

Dogfather
Altitude is your friend
Premium
join:2007-12-26
Laguna Hills, CA
·Cox HSI
·MegaPath
·Verizon FIOS
·Cox VOIP
·Verizon west (ex G..
·ViaTalk
·Time Warner VOIP
·RoadRunner Cable


edit:
September 18th, @05:33PM

Re: That's how they lost their huge adds

Because you have hundreds of customers paying to support a single truck roll. Your math requires everyone to have a truck roll and ignores the fixed costs of providing DSL. There are many costs that are the same whether they're providing service to 1 customer or 1000.

It's the same as insurance. It's pooled premiums that allow an insurer to pay off a claim. A single claim taken against a single insured will look like a losing proposition every time. But for every insured that takes a claim, there are hundreds or thousands that don't.

There is no skewing the annual report. Data services were and are profitable and those margins increased when they had these cheap DSL deals. Without them we see clearly that they get no new customers.

Parakletos

@cisco.com

DSL advertising

No general consumer even knew that the $10 per month bundle existed. It is not advertised today. There are many businesses that would still opt for it. Totally worthless FCC and public service commission enforcement of the deal's T&C's. For once I agree with the democrats and that sucks.

r81984
Tough to beat.
Premium
join:2001-11-14
Morgan City, LA
·Cox HSI
·Insight Communicat..
·AT&T Midwest

Re: DSL advertising

said by Parakletos :

No general consumer even knew that the $10 per month bundle existed. It is not advertised today. There are many businesses that would still opt for it. Totally worthless FCC and public service commission enforcement of the deal's T&C's. For once I agree with the democrats and that sucks.
I knew about it just by going to the ATT site when I was trying to find out the prices of DSL. The link to the $10 dsl is clearly marked on their site. I only knew of its existence from seeing it posted there.
--
»www.ryanoneill.us

r81984
Tough to beat.
Premium
join:2001-11-14
Morgan City, LA
·Cox HSI
·Insight Communicat..
·AT&T Midwest


edit:
September 17th, @05:35PM

Re: DSL advertising

Click for full size
This is right next to their tier prices.
»www.att.com/gen/general?pid=6431

Click the link in the picture and it takes you here: »www.att.com/gen/general?pid=7681
--
»www.ryanoneill.us
jester121

join:2003-08-09
Lake Zurich, IL
It's not offered to businesses. Elect more Democrats and you'll have all the regulation and oversight your business can handle, and then some.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: DSL advertising

or elect more Republicans and watch as the collapse of the U.S.'s financial institutions bring you and your retirement (ha!) to your knees.
jester121

join:2003-08-09
Lake Zurich, IL
·ViaTalk

Re: DSL advertising

said by morbo See Profile :

or elect more Republicans and watch as the collapse of the U.S.'s financial institutions bring you and your retirement (ha!) to your knees.
hehe... check your facts and see which party gets more contributions from Wall Street and Fannie/Freddie. Wasn't the Democrat Congress going to fix all this starting in 2006?

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:

Re: DSL advertising

i was pointing out the failure of your logic and coming back at you with the same line of thinking.

neither republican or democrat describes me.

graysonf
Premium,MVM
join:1999-07-16
Fort Lauderdale, FL

I didn't have any trouble finding the $10 offer....

I didn't have any trouble finding the $10 offer....I read about it here on DSLReports!
rdoylesr2

join:2005-05-03
Washington, IN

Re: I didn't have any trouble finding the $10 offer....

How many consumers and small to medium business come to this site for info on rates??? Not enough...

dr3yec

join:2002-12-19
00000

Re: I didn't have any trouble finding the $10 offer....

Very true!

graysonf
Premium,MVM
join:1999-07-16
Fort Lauderdale, FL
I've been here ten years. I can't help those who can't or won't search around some.

ninjatutle
You can keep the "change"

join:2006-01-02
San Ramon, CA
·AT&T U-Verse

I switched my mother's house over the weekened and did the ordering. One of the ordering steps asked if they had any DSL service within the past year. If you chose no, you have the option of the $10 rate. I picked the higher rate for them because of the free modem rebate and $100 cash back you only get with 6mb or 3mb.

graysonf
Premium,MVM
join:1999-07-16
Fort Lauderdale, FL

Re: I didn't have any trouble finding the $10 offer....

That's right. The offer is exposed to those who qualify for it.

swhitney2003
I can't drive 55.
Premium
join:2003-06-13
NH
clubs:
·Skype
·Verizon Wireless B..
·Comcast

more customers

I'm sure many would opt for the cheapest tier. Who... people who just surf the web and check email. There is a large number of people that do not need super fast connections, just something better than dial-up. Getting that kind of service for dial-up price... I'd jump on it (if I was in that group of people).

meh37

@verizon.net

Funny guy...

does he write for SNL* on the side?

*SNL: "state of the art" in comedy
FAQFixer
Premium
join:2004-06-28
Powder Springs, GA

Karl Strikes Again

The only reason Kommie Karl has trouble finding the deal is because he is blinded by hate and bias. It is clearly marked on the website (please reference the earlier post with links). Of course Karl also doesn't make mention that $14.95 is for existing customers and customers that don't qualify for the $10 package. The $10 deal has certain limitations, time frames, and qualifications because of the merger concessions. So people who normally pay $19.95 can reduce their bill $5...which is good...except for Kommie Karl.

JasonOD

@comcast.net

Re: Karl Strikes Again

Hey, Karl is awesome. Sure its pretty easy to figure out he leans to the left, but his arguments are well thought, and frankly at times I find them to be a reality check and balance to the stuff companies try and pass off on all of us.

That said, as an ATT stockholder, if they they spend one nickel advertising this mandated loss leading tier, me and every other stockholder won't be happy.
FAQFixer
Premium
join:2004-06-28
Powder Springs, GA

Re: Karl Strikes Again

said by JasonOD :

Hey, Karl is awesome. Sure its pretty easy to figure out he leans to the left....
"leans to the left"? Karl is such a Kommie believes that Kim Il Sung is part of the vast right wing conspiracy!!!!!

toplevelpot
yes it is, no I don't share

join:2008-04-19
Los Angeles, CA
·DSL EXTREME
·AT&T Yahoo

Nah, nah, I had $14.95 dsl upto april. May, I got no internet charges but june we went to the higher rate and they back charged us for may, IOW, my june bill was $40 when normally it's $15!! No warning.
Now they wanna talk about $14.95 again, bite me att. I'm getting my email situation straightened out then dslextreme here I come
--
"Sir, I protest! I am not a merry man!"

Just Visiting

@rr.com

Leave the LEC's alone

Please, they have so few actual employees left.

Just some management types that need money.......

jbob
Reach Out and Touch Someone
Premium
join:2004-04-26
Little Rock, AR
·Comcast
·AT&T Southwest

Yeah free Wi-Fi

I'm one of the ones who jumped on the $10.00 monthly bandwagon. I just needed a cheap backup to Comcast.(dual WAN router) Now that they've added the Wi-Fi that's a bonus. So now I just gotta figure out how to use the free wi-fi.
Sasba858

join:2008-08-28
Pearl River, LA

Taking advantage of uninformed elderly people.

I am asking this for my mother. She just moved into a new house after living with my sister for 3 years, but she had BellSouth/AT&T 3 years ago before Katrina destroyed her home on the other side of town.

Could she have qualify for the $10 DSL lite?

When she ordered her BellSouth/AT&T phone service they offered her DSL lite for $14.95 for 6 months then it will go up to $19.95. If this is true it seems that they are taking advantage of the elderly.

What are your thoughts, and can anything be done for her?
Forums » AT&T Drops DSL Price, But Not Really


Friday, 09-Jan 03:45:46 Terms of Use | Privacy Policy | Hosting by www.nac.net - DSL,Hosting & Co-lo | feedback | contact
over 9 years online! © 1999-2009 dslreports.com.