January 23rd, 2008

Finally! AT&T delivers a premium broadband speed tier via U-verse

I have a “guest blog” from my colleague Doug Williams our Broadband analyst on AT&T’s announcement today on U-verse.

AT&T has finally introduced a broadband speed tier that makes use of the VDSL2 network architecture used to deliver the company’s U-verse TV and Internet access services. AT&T is now offering a 10Mbps down/1.5 Mbps up U-verse broadband product to customers who bundle it with U-verse TV, for $55 per month.

It’s about time. When AT&T first rolled out its U-verse service offering, I was surprised that the broadband service came in the same flavors as AT&T’s DSL service offering. (Clients can review a case study of AT&T’s prior U-verse broadband offering here, which was attached to a report on consumer broadband service provider selection, available here.) By tying its undifferentiated U-verse broadband offering to the U-verse TV services, AT&T clearly expected uptake to be driven by the new TV service. Now that the 10/1.5 broadband service is available, consumers that value a fast Internet connection over all else when considering a bundle may give U-verse another look. I’m a bit surprised that the price point isn’t a bit lower. Look for more competitive bundled pricing in the future, particularly if early uptake lags corporate expectations.

In addition to the faster connection speed, I’m equally pleased that AT&T has dubbed the new service “AT&T Yahoo! High-Speed Internet Max.”

It’s no FiOS, but at least you can see a nickname in there. (Hint: it’s “AT&T Max.”) What is the shorthand for “AT&T Yahoo! High-Speed Internet U-verse Enabled,” anyway?

P.S., Thank you to Julie for sharing space on her blog. My own blog should be up and running soon, so look for it next time you visit Jupiter’s Analyst Weblogs page.

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