AT&T to raise broadband cable rates

AT&T will raise its cable modem service rates by as much as 20% a month starting 1 June, the company said today.

AT&T will raise its cable modem service rates by as much as 20% a month starting 1 June, the company said today.

This is the first rate increase on cable modem services from AT&T Broadband, which has provided high-speed Internet access for about five years, according to AT&T Broadband spokeswoman Sarah Duisik. At the time of writing, the rates are $39.95 (£28) for cable modem service and the lease of a modem or $29.95 for cable modem service only.

"We think the new price best reflects the value of what we are offering," said Duisik. The service is always on and provides the best "bits-per-buck," she said.

Customers will be notified on 2 May of the rate hike. For customers who lease a modem, the $6 hike represents a 15% annual increase, to $45.95, while subscribers of the high-speed data service will see only a 20% increase, to $35.95.

According to its most recent figures, AT&T Broadband has 1.28 million customers for high-speed data service, with the largest percentage of them in San Francisco, Denver, Atlanta and Boston.

In January, AT&T Broadband said it had added 2.3 million subscriptions of its high-speed cable modem service, digital television and phone service during 2000. AT&T Broadband ended 2000 with approximately 4.4 million subscriptions to its services, according to company spokesman Steve Lang.

This year, company plans to grow its subscription base by more than 2.8 million subscriptions, said Lang.

Visit AT&T Broadband at www.attbroadband.com .

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