Thursday, April 27, 2006

AT&T launches faster DSL service

AT&T, the former SBC Communications, is launching consumer DSL service at twice its current fastest offering in an effort to boost its competitive position against cable companies.

Starting today, AT&T is selling a Digital Subscriber Line with download speeds of up to 6 megabytes per second for $29.99 per month for the first year. On Monday, it also will be available online for $27.99. After 12 months, the price rises to $39.99 for both ordering options.

As with all DSL, availability is dependent on the distance from the customer's home to AT&T's network. The 6 mbps service is available at distances up to 6,500 feet from a central office, about half the range of the 1.5 mbps service.

AT&T's 3 mbps service for home users is $17.99 per month for the first year, $29.99 per month after that.

Charter's fastest cable Internet offering is 3 mbps for $42.99 bundled with other services, $54.99 alone. Charter also offers service at 384 kilobytes per second for $35.99 per month bundled, $45.99 by itself.

AT&T previously has offered 6 mbps DSL to businesses. That service now will cost $54.99 per month.

Like other phone companies, AT&T is in fierce competition with cable companies for broadband customers, and has boosted its growth rate by cutting prices. The company is the country's largest provider of DSL lines, with 7.4 million lines in service at the end of March.

Cable operators have responded by utilizing the technical advantages of their lines and raising their maximum download speeds, often to 8 mbps or more.

BellSouth Corp., the phone company that has agreed to be acquired by AT&T, introduced 6 mbps service in November for $46.95 per month.

AT&T also has started a multibillion dollar project to draw optical fiber into neighborhoods, which makes DSL speeds


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