AT&T Ratchets up Broadband Prices by $5

Bad news for broadband: it's getting more expensive for most of AT&T's DSL subscribers.

Prices on cell phone service may have plunged when the phones finally hit the mainstream, but unfortunately, consumers will not be lucky enough to see the same effect hit the market for broadband Internet service. AT&T announced on Monday that its will prices actually move the other direction, shooting up about $5 per month for DSL subscribers.

Some customers, such as those subscribing to the company’s priciest 6Mbps Elite service, will see their fee remain the same, while most others will rise by $5. AT&T’s Pro 3Mbps service, for example, used to cost subscribers $28.99 per month but will now cost $34, just shy of the $38.99 Elite package that offers double the bandwidth.

Just a month ago, AT&T announced weak numbers in its landline business thanks, which may have been the cause for the rate hike. Officially, AT&T spokesman Michael Coe told the Associated Press the company made the change “to better reflect the value of our broadband service.”

Customers in the recently acquired BellSouth region will be immune from the changes, as will those who signed up for service under promotional deals – at least until the time period runs out. Others can expect to see the billing changes occur in March.