SBC Communicationson Thursday pushed the pricing envelope for bundled broadband
by announcing a $19.95 monthly plan for new customers who purchase a high-end calling plan.
SBC, which markets DSL high-speed services in partnership with Yahoo,
said the $19.95 a month plan, effective Nov. 1, is available for new broadband subscribers or for customers
looking to switch from cable to DSL.
To qualify for the low-priced offering, customers must purchase SBC’s $48.95 a month
unlimited calling plan, the company said. The new plan — SBC Yahoo DSL Express — offers
download speeds of 384 Kbps to 1.5 Mbps and upload speeds of up to 384 Kbps. It also comes
with increased e-mail account storage, safety and security features and a parental controls
package.
The $19.95 price point is available for the full year and is the cheapest bundled
high-speed package available from the Baby Bells. SBC rivals Comcast
and BellSouthhave also been aggressively reaching out to new customers with
price-based promotional discounts.
BellSouth, for example, hawks a $9.95 package for six months that offers limited-speed
connectivity. By contrast, high-speed access from cable companies cost in the neighborhood
of $30 to $35 for monthly service.
SBC’s latest move follows the launch of a
$1.99-per-month Wi-Fi service
for customers who subscribe to SBC Yahoo DSL. The reduced rate — which is less than $29 for both —
requires a one-year commitment.
SBC companies account for more than 4.7 million DSL lines in service and projections are
for more than 5 million DSL subscribers by the end of the year.
Separately, Comcast said it added 549,100 new high-speed subscribers in the third quarter
this year to help improve its financial results. The company said it now has 6.5 million
broadband subscribers.
Cox Communicationsalso announced growth in high-speed subscriptions
this quarter.