AT&T is set to raise rates on its dial-up service to be more expensive than its basic DSL plan, in a maneuver that seems designed to encourage dial-up subscribers to either move to AT&T DSL or to a competitive dial-up service.
On December 1, AT&T will raise its dial-up price to $22.95/month for its month-to-month plan. Some customers will see their rates go up to $15.95.
AT&T has several dial-up plans. Price points include $9.95 a month, $15.95 a month, and $21.95 a month. As to how the price increases would be applied, the AT&T spokesman said only that the price increases will be based on each subscriber’s current plan, and that for many current customers, the increase to $22.95 would be an increase of only $1.
The company’s advertised price for its 1.5 Mbps DSL tier is $19.95 – though that’s with a one-year service contract. Competitive dial-up services are typically available at $9.95/month with a one-year contract.
As for a rationale for the price increases, the AT&T spokesman said, “This change is intended to better reflect the overall demand for broadband service.” When asked for elaboration, the spokesman said, “Throughout the years, as broadband has become more pervasive, consumers have been drawn to the benefits the technology offers over dial-up.”