AT&T Corp. has introduced high-speed Internet service to consumers in four states along the East Coast as part of its nationwide strategy to bundle local and long-distance phone service and broadband access.
The broadband service is now available to consumers in New Jersey, Massachusetts, Maryland and Virginia. In July AT&T unveiled DSL in New York.
Adding broadband service to the consumer package is part of AT&T’s strategy to develop a full arsenal to battle its long-distance rivals, MCI and Sprint Corp., and the four regional Bell operating companies.
Revenue in AT&T’s consumer services unit has shrunk by billions of dollars over the last few years due to wireless substitution and stiff competition from the Bells among other reasons.
AT&T plans to ultimately offer broadband service in all the states where the Bedminster, N.J.-based company provides consumers bundled local and long-distance phone service. On Monday AT&T announced plans to expand local residential phone service to 35 states by the end of the year, up from 13 states as of now.
AT&T does not own a consumer broadband network, but it has partnered with Covad Communications Co. to provide DSL through a so-called line splitting arrangement. Under the agreement, AT&T leases the entire phone loop from a Bell company, such as Verizon Communications Inc. in New York, and shares the line with Covad to provide phone service and DSL. The arrangement is limited because AT&T cannot lease the entire loop from Verizon unless a customer buys local phone service from AT&T.
AT&T customers can get unlimited local and long-distance phone service; four calling features, such as caller ID and call waiting; and DSL for approximately $90 to $100 a month depending on whether they buy basic or premium broadband service.
The AT&T standard DSL plan costs $19.95 for the first three months and $39.95 a month afterwards. The preferred plan is $49.95 a month; consumers who choose this plan receive a $20 discount off the regular price for the first three months.
