AT&T Raises Cable Broadband Prices

Well, just about everyone saw it coming. With decreasing competition in the broadband market, the last two players, the regional phone and cable companies, are engaged in a reverse price war. AT&T struck the most recent blow to consumers by raising the base price for Internet services from $36 to to $43. That's a seven dollar jump and a lot of money to pay for Internet access if you just check your e-mail. For the avid Internet users, it is still a good deal because it frees up the phone line (or keeps you from purchasing an additional line).

The good news for AT&T subscribers is that AT&T will be lowering the rental fees for the cable modem. In the end, subscribers who rent their cable modems will end up paying the same amount for their Internet access. In addition, AT&T intends to give each customer 6 coupons for $7 off their Internet access which they can apply over the next six months.

After that, though, it is estimated that AT&T will be raking in an extra $1.14 million a month. This extra cash will no doubt make the broadband division look more attractive to Comcast, who recently announced their intention to buy AT&T Broadband. And, with little competition in the broadband market (Verizon DSL usually comes in somewhere around $50), there is nothing stopping AT&T.

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