AT&T; Raises Broadband Cable Rates
High-speed Net access rates jump as much as 20 percent in June.
James Evans, IDG News Service
Tuesday, May 01, 2001
AT&T will raise its cable modem service rates by as much as 20
percent or $6 monthly starting June 1, the company has announced.
This is the first rate increase on cable modem services from AT&T
Broadband, which has provided high-speed Internet access for
about five years, according to Sarah Duisik, AT&T Broadband spokesperson.
Currently, monthly rates are $39.95 for cable modem service and the lease of a
modem, or $29.95 for only cable modem service.
"We think the new price best reflects the value of what we are
offering," Duisik says. The service is always on and provides the best
"bits-per-buck," she said.
Customers are being notified now of the rate hike, Duisik says. For
customers who lease a modem, the $6 hike represents a 15 percent annual
increase, to $45.95. Subscribers of the high-speed data service only will see a
20 percent increase, to $35.95.
Subscriptions Doubled
According to its most recent figures, AT&T Broadband has 1.28
million customers for high-speed data service, with the largest percentage of
them in major metropolitan areas like San Francisco, Denver, Atlanta, and
Boston.
In January, AT&T Broadband said it had added 2.3 million
subscriptions of its high-speed cable modem service, digital television, and
phone service during 2000. AT&T Broadband ended 2000 with approximately 4.4
million subscriptions to its services, says Steve Lang, an AT&T Broadband
spokesperson.
The company in 2001 is seeking to grow its subscription base by more
than 2.8 million subscriptions, with some wiggle room for customer turnover, he
adds.
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