Most subscribers to get hit with the price hike
Last modified on Wednesday, 06 February 2008 09:17
AT&T has announced that they will be hiking the price of their broadband Internet access in most markets starting in March. The $5 flat increase will affect most subscribers in the three slowest connection speeds.
While AT&T has been dinged as of late for plans to block subscriber access to file sharing and using filters to snoop on customers, this latest announcement seems to be more driven by the company not meeting revenue targets. AT&T isn’t the only broadband provider in the U.S. who is looking at price increases.
Other broadband Internet providers are looking at the possibility of jacking up rates or moving to a “pay for what you use model” in an effort to perhaps curb some of the behavior of so-called bandwidth hogs.
While the days of all-you-can-use Internet may not be over, it is becoming obvious that companies are going to hike prices, and this is while many users complain of broadband providers who oversell capacity and continue to provide poor customer service.
The question has to be asked what the companies are going to do with the extra revenue - we doubt that it will be used to enhance infrastructure or to provide better service; it is most likely a play to do nothing more than generate more revenue for the company.