Customer using AT&T’s most common broadband services from their tiered bandwidth offerings. The most common bandwidth services are the three slowest tiers, ranging from 768 Kbps to 3 Mbps (bits per second). The most often subscribed bandwidth is 1.5 Mbps.

Unlike Time Warner, AT&T’s rate hike isn’t a direct penalty for using more bandwidth, but rather a general $5 hike across the board. The only customers not affected by the pending hike will be new customers who sign up for the slowest service plan AT&T offers and customers still under the time limits of various promotional deals AT&T has previously offered.

AT&T listed the reason for the hike as a need to accommodate the rising cost of doing business, including costs related to bandwidth usage over all. Recently parts of AT&Ts service area were bought by Bell South – those customers will not be affected by the hike. In a possible response to the news, AT&T’s stock finished down on Monday – a full 12 cent drop to $38.16.

The price increase goes into effect in March, and affected customers began getting notices via e-mail or in their bills late last week, AT&T representative Michael Coe said.

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Entry was posted on Monday, February 4th, 2008 at 10:17 pm under Internet.

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