AT&T Ups Broadband Pricing By $5/Month
AT&T (T) is raising prices on all consumer broadband services (excluding its 6 MBPS tier) by $5 a month. This includes DSL service as well as U-verse customers and customers purchasing broadband services in bundles, according to Craig Moffett, an analyst at Bernstein Research. Moffett notes that video services prices also have been on the rise, despite increased competition. “The telcos, cable operators and DBS providers will compete aggressively for voice, video and data customers - but likely not on price,” he writes.
AT&T today is down 20 cents at $38.08.
Moffett might consider reviewing quarterly ARPU figures from all the cable operators. ARPU for voice and data has been declining each quarter, while only video has increased. The operators will compete on price, particularly when they operate service silos, and cannot begin to offer blended services. Where operators can move from “bundled” to “blended” you’ll see some pricing power. Otherwise you’ll see the promotional pricing effect on the bundle.
I’d like to read this report, Mr. Moffett. They just cut my price by $10/month, so why would they now turnaround 2 months later and raise it?
I don’t buy this analysis at all.
OK, I’ll eat my words. No official press rls out of T yet, but AP is reporting the same thing. Price increase is for lower speed DSL and is for most of the states T covers, but not all (appears areas acquired under the Bell SOuth deal are NOT included in the hike plan)>
Can’t be having all those Red states experiencing overt inflation before the election.
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
