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Man…. DSL is getting cheaper. SBC/AT&T has cut its prices again to ultra-low $12.99 per month ( down from $14.99 per month, which was lowered from $16.99 per month mid-January) as it trolls for new sign-ups. These prices are good for the 1.5 Mbps downstream / […]

Man…. DSL is getting cheaper. SBC/AT&T has cut its prices again to ultra-low $12.99 per month ( down from $14.99 per month, which was lowered from $16.99 per month mid-January) as it trolls for new sign-ups. These prices are good for the 1.5 Mbps downstream / 384 Kbps upstream DSL connection. Want more bandwidth? 3 Mbps downstream / 512 Kbps upstream service will cost you $17.99 per month, down from $21.99 per month. These prices are good for a year, but then you can switch back to the cable guys, who are bound to offer some sort of a deal. If you switch from a cable provider, then you get three months free. SBC/T is going for “scrape the barrel bottom strategy.” Now contrast this with BellSouth, which is making more money by selling faster more expensive connections.

Bottom line is DSL demand is not what it used to be! In the 3rd quarter of 2005, SBC/AT&T added 528,000 subscribers, but in the fourth quarter of 2005, the new subscriber numbers fell to 425,000. According to UBS’ analyst report, the company said it had reached 7 million DSL subscribers- or just over 80,000 new subscribers in January. Lets say if that rate continues, by end of first quarter 2005, SBC/AT&T would add only 240,000 subscribers. Hence the price cuts. With 26% DSL penetration of its households there is nothing much they can do – except prices. If they don’t then it won’t have many triple play customers to sell the much talked about “video services.”

  1. [...] Comcast Cable added 378,000 High-Speed Internet subscribers during the fourth quarter of 2005, and the revenues from broadband business were up year-over-year by 23.9% to $1.1 billion. The price war is not impacting Comcast that much it seems, and the company points out that broadband ARPU remained pretty stable. At end of 2005, the company had boosted its broadband sales 27.6% to $4.0 billion in 2005, reflecting a 1.5 million or 21.8% increase in subscribers with stable average monthly revenue per subscriber of $42.82. Comcast Cable ended 2005 with more than 8.5 million high-speed Internet subscribers or 20.7% of available homes.Yup.. the 6 and 8 MBPS tiers are helping keep the competition in check for now. Phone business was pretty good as well. Comcast added about 79,000 phone subscribers in the fourth quarter 2005, bringing the total to about 89,000. Piddly compared to others, but the VoIP service has been slow out of the blocks. “We have also made great strides in building the foundation that will significantly accelerate our Comcast Digital Voice business in 2006. This in turn will allow us to fully market a bundled offering of voice, video and high-speed Internet products. In 2006 we expect to add at least 3.5 million new revenue generating units, a 35% increase over 2005, including 1 million new Comcast Digital Voice customers. [...]

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  2. [...] Om Malik from GigaOm sees this pricing as a desperation tactic by the bells. I think its smart marketing, selling tiered services from 768kb/s DSL all the way to 15Mb/s FiOS. It allows the conversion of people with a fixed $15/month broadband budget to convert to higher speeds, and squeezes more revenue out of the telcos fixed cost base. We also have strong beliefs about why the telcos are willing to fight to the death for market share in the broadband arena… to be shared later. [...]

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  3. Beware of those one year promos because as soon as the year is up they will hit you with a two month bill of regular rates. BAM just like that you are done.

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  4. I AM STILL ON DIAL UP WAITING FOT ATT/YAHOO TO INSTALL ????

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