Wednesday, June 01, 2005

Broadband Price Wars

SBC has escalated the broadband pricing wars, reducing the introductory price of their entry-level DSL offer to $14.95/month. (One-year term, and the price goes to the then-current price at the end of the term.) This is only $2/month more than their dialup internet access (bundled with local/LD service).

Next step: Incent dialup internet subscribers to convert to DSL and shut down/sell off the dial access network, reducing operational expenses. (Telcos love opex reduction business cases.)