Santa Monica, CA
Not $40/month More like $55, when you include the phone tax and the SSR charge.
If you're a heavy, traditional landline user, and you're reasonably close to the central office, its quite competitive versus a double-play option from Time Warner.
But if you're farther down the line or don't want dialtone, it doesn't seem like such a deal.
The good news is that Sonic is handling the traffic, so other than the usual AT&T-copper folly, there shouldn't be any issues with achieving the maximum potential speed.