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AT&T's DSL deal and why it's so hush hush

Much has been made of AT&T's $10 DSL offer and how Ma Bell isn't exactly advertising the deal. On the surface $10 DSL deal, which was a part of getting the Federal Communications Commission to approve AT&T's BellSouth purchase, should be kept quiet for Ma Bell's financial well being.
Written by Larry Dignan, Contributor

Much has been made of AT&T's $10 DSL offer and how Ma Bell isn't exactly advertising the deal.

On the surface $10 DSL deal, which was a part of getting the Federal Communications Commission to approve AT&T's BellSouth purchase, should be kept quiet for Ma Bell's financial well being. If AT&T's 12,842 DSL lines decided to go for the slower $10 plan Ma Bell would take a hit.

Let's assume everyone traded down from a $19.99 a month plan to the $10 special. That's half the revenue.

However, AT&T isn't allowing current DSL subscribers to trade down. The $10 DSL is only for new customers. That's the real reason the DSL plan is being kept quiet. If you were a current AT&T customer looking to pinch pennies wouldn't you at least want the option for slower (and cheaper service)?

Hell, yeah. It's no wonder why AT&T is keeping this deal quiet. AT&T is going to field customer complaint calls right about now. It's like AT&T is forcing you to pay more.

Meanwhile, AT&T is looking to migrate dial-up subscribers to DSL services. For customers it's a no-brainer. AT&T's dial-up runs you $14.95 if you're a voice customer too. I'd reckon that the dial-up network is a pain to keep up and probably more costly to maintain than DSL services. In addition, AT&T can always up sell these cheap DSL customers later.

But chances are all customers will get a crack at $10 DSL from AT&T--once the complaints rev up.

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