AT&T Raises Broadband Rates

Telecommunications company AT&T Inc. announced today that, starting next month, it will raise the price of its most common broadband Internet services in many of the states where it operates. The $5-per-month hike will apply in all but the states acquired with the buyout of BellSouth and will affect customers who have the company's three slowest broadband tiers, ranging from 768 Kpbs to 3 Mbps, said AT&T spokesman Michael Coe. The company decided to raise prices for some of its customers "to better reflect the value of our broadband service" as demand continues to grow for high-speed Internet services.

The price increase goes into effect in March, though affected customers have been getting notices via e-mail or in their bills since late last week.

News source: AP

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AT&T now offers "Naked DSL" for an additional $5 per month, but it could save you close to $20 by being able to cancel your home phone service.

another company should come into the area and offer better prices

But they don't. This is borderline price gouging. In most area you have only one or two providers and they compete to which one will raise the price higher before consumers give up.

Comcast just did the same in my area hiking all its prices for TV and internet by $3-4 on EACH service. And the BS comment was that it was to improve service... yeah right.. $55 per month for analog service of average quality at best. And let me tell you I did not see any improvement.


Exactly. this is what capitalism is in the real world. Far too many depend too much on textbooks when they should be looking at what is actually happening.

Eventually you may not have a choice. The main objective of a primarily capitalist system is to eliminate any and all competition and thus corner the market..... Its when that state has to step in that you continue to have protections and competition.

The goal of capitalism is to promote competition. When AT&T does this, another company should come into the area and offer better prices and take customers from AT&T. Then AT&T will have to respond by lowering their prices or changing policies. This isn't like the SOCIALIST system in Germany (in Europe) where the Deutch Telekom (ONE COMPANY in precious socialist Germany in Europe) controls most telecommunications in the country. That one company must really compete with itself (because Germany certainly isn't a capitalist economy...) Think before you type.

(fevoldj2 said @ #5.2)
The goal of capitalism is to promote competition.

That is a myth. Capitalism's history more than proves that that is a myth as well.

When AT&T does this, another company should come into the area and offer better prices and take customers from AT&T. Then AT&T will have to respond by lowering their prices or changing policies.

Not if they buy them out instead.

This isn't like the SOCIALIST system in Germany (in Europe) where the Deutch Telekom (ONE COMPANY in precious socialist Germany in Europe) controls most telecommunications in the country.

Another myth. They may have started as socialist but by the time they gained power they were fascists instead. Remember North Korea also calls itself The Democratic People's Republic of Korea. Are you saying that they are a democracy as well?

That one company must really compete with itself (because Germany certainly isn't a capitalist economy...) Think before you type.

I always think, that is why I don't fall for myths like you do. It is quite apparent that you don't have one clue about how modern capitalism actually works in the real world. You probably also believe that America is in good shape under it as well now. If it weren't for the government stepping in there wouldn't be an real competition left at all, and of course no consumer protections at all either. A free market is a fiction.

Oh nice, just after they lured a bunch of people to switch over because of their "low prices". I'm sure their customers are thrilled about this. I wasn't sure and have no desire to ever be a customer of AT&T (though unfortunately for some you have little choice )