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story category Getting 'Naked' Costly
Though stand-alone DSL popularity to soar
(old news - 10:45AM Monday Jun 26 2006)
tags: dsl · prices · business
The Mercury News has more on AT&T being forced by regulators to offer "naked" DSL in California, yet charging almost the same for it as they did for DSL and local phone service. "The choice for the customer is whether you want to pay AT&T $45 or $45," says a spokesperson for the San Francisco consumer advocacy Utilities Reform Network. "I don't think the goal for AT&T is to give people a reasonable choice, it's to monopolize." AT&T says setting that price "is a way to let customers know that buying several services at the same time is always the best value," says the article.

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Forums » Getting 'Naked' Costly
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nasadude

join:2001-10-05
Rockville, MD
·Comcast

I got your naked DSL right here!

AT&T says setting that price "is a way to let customers know that buying several services at the same time is always the best value,"

what they really mean:

AT&T says setting that price "is a way to let customers know that no matter what regulators do, we can still screw them"

ropeguru
Premium
join:2001-01-25
Bridgeport, WV
clubs:
·VOIPo

Re: I got your naked DSL right here!

said by nasadude See Profile :

AT&T says setting that price "is a way to let customers know that buying several services at the same time is always the best value,"

what they really mean:

AT&T says setting that price "is a way to let customers know that no matter what regulators do, we can still screw them"
And the consumer...
--
FWD#: 223611

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME


1 edit

Re: I got your naked DSL right here!

What it means is..
This is how much it costs for basic copper service... $45/month - we don't care if its a highly regulated dialtone, or DSL.
I'm not really suprised though... this isn't much different than Cable Internet on Comcast.
Comcast: HSI - no TV = $56.95 + $3.00/rental fee
Comcast HSI w/TV = $42.95 + $3.00/rental fee (+ $55-$60 for TV)

AT&T DSL - no dialtone = $45/month
AT&T DSL + dialtone = $29.99/month (non intraductory) + $15/month POTS

I'd also 'hope' that this could change some of the pricing structure..
ie. if 'basic' 1.5/384 is $45, would 3.0/512 be $50 and 6.0/768 be $60 ?

I don't see a 'real' difference here. I'd say for the extra $1 (as long as it doesn't include about $10 in fees/taxes) get the dialtone for emergencies.

Personally, I would have liked to see this instead:
AT&T DSL $40/month (no POTS)
AT&T DSL w/ VoIP package $50/month

Currently I have a $39.95 unlimited local + LD on AT&T, and DSL (separate ISP) that I can get for less than $20/month. I would expect that DSL+VoIP package to be cheaper than DSL +POTS

Nightfall
My Goal Is To Deny Yours
Premium,MVM
join:2001-08-03
Grand Rapids, MI
·Site5.com
·AT&T Midwest
·Comcast

Re: I got your naked DSL right here!

said by en102 See Profile :

What it means is..
This is how much it costs for basic copper service... $45/month - we don't care if its a highly regulated dialtone, or DSL.
I'm not really suprised though... this isn't much different than Cable Internet on Comcast.
Comcast: HSI - no TV = $56.95 + $3.00/rental fee
Comcast HSI w/TV = $42.95 + $3.00/rental fee (+ $55-$60 for TV)

AT&T DSL - no dialtone = $45/month
AT&T DSL + dialtone = $29.99/month (non intraductory) + $15/month POTS

I'd also 'hope' that this could change some of the pricing structure..
ie. if 'basic' 1.5/384 is $45, would 3.0/512 be $50 and 6.0/768 be $60 ?

I don't see a 'real' difference here. I'd say for the extra $1 (as long as it doesn't include about $10 in fees/taxes) get the dialtone for emergencies.

Personally, I would have liked to see this instead:
AT&T DSL $40/month (no POTS)
AT&T DSL w/ VoIP package $50/month

Currently I have a $39.95 unlimited local + LD on AT&T, and DSL (separate ISP) that I can get for less than $20/month. I would expect that DSL+VoIP package to be cheaper than DSL +POTS
Actually, it is cheaper to get Comcast HSI with just basic cable at $13 a month. This level of cable TV just provides local channels though. However, it is a few bucks cheaper to get HSI with this package than without cable.

If anyone thought that naked DSL was going to be as cheap as DSL with a POTS line was sadly mistaken. I knew they would jack the price up on naked DSL. Cable does it, so why not the phone companies? *Sigh*
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nasadude

join:2001-10-05
Rockville, MD
·Comcast

Re: I got your naked DSL right here!

I have heard a reason for why cable does this that actually makes sense:

if you bundle HSI and TV, whether or not you want the TV part, the cableco gets to count you as a TV subscriber. The larger the TV subscriber base, the more the cableco can charge for advertising. Therefore, cablecos have an ancillary reason to get people to become TV subscribers.

Other than studies that show people who bundle don't "churn" as much, I don't know what the telcos get out of making people bundle.

Nightfall
My Goal Is To Deny Yours
Premium,MVM
join:2001-08-03
Grand Rapids, MI
·Site5.com
·AT&T Midwest
·Comcast

Re: I got your naked DSL right here!

said by nasadude See Profile :

I have heard a reason for why cable does this that actually makes sense:

if you bundle HSI and TV, whether or not you want the TV part, the cableco gets to count you as a TV subscriber. The larger the TV subscriber base, the more the cableco can charge for advertising. Therefore, cablecos have an ancillary reason to get people to become TV subscribers.

Other than studies that show people who bundle don't "churn" as much, I don't know what the telcos get out of making people bundle.
Probably the same thing. There is another thing to factor in as well and that is supporting the connection. I suppose there are higher support costs in trying to fix a cable HSI connection rather than one with cable TV attached to it. Maybe less test you can do on the connection? I don't know if this is true, but its worth thinking about.

I still consider this to be pretty crappy for the consumer. Course, I didn't expect AT&T to come out with naked DSL at the same price as their DSL with POTS. Anyone who did would probably have to be considered a lunatic.
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My Domain
Nightfall's Hockey and Life Journal
patcat88

join:2002-04-05
Jamaica, NY

A company can get loans/credit ratings based on captive customers (contracts) and number of products sold. If customers bundle, they can say we have 6 million pots and 6 million dsl, and sell 12 million products, but we "cover" 10 million people, but only have 6 million customers. All this bundling proves the products are practically free, and customer cost has little if anything to do with operational costs. All your money gets put into a pool to pay dividends, bonuses, b2b backroom undertable dealings, "cost of living expenses" and loans and credit lines, bonds, and yeah maybe capitol and operational costs. The POTS equipment has paid itself off 100s-1000s of time by now. Its free to operate for ATT.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME

Basic cable for $13 isn't available in my area. I've called CS before I went satellite, and the 'basic' analog package offered here starts at $55/month. I do see it listed on the 'June 2006 rate card for $13.43', however, I've never been able to order it. CS. Always tells me that Limited Basic isn't available at my address.

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Skippy25

join:2000-09-13
Hazelwood, MO

Re: I got your naked DSL right here!

I don't believe they have a choice.

I believe they are required to give you just local basic for that price if that is what you are seeking.

That could just be our area, but I would imagine that is pretty universal.

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
·Qwest.net

What do you expect

DSL service is non regulated, meaning AT&T can do anything they want with a naked DSL service. They want you to bundle because they can make more money this way. Their profits on the regulated telcom services is not much so bundling DSL with it means they can make DSL pay for the other bundled services.
--
The older I get the more I prefer the company of my dogs over that of man kind.

JohnQPublic
Premium
join:2002-03-22
Xanadu

Re: What do you expect

said by Transmaster See Profile :

Their profits on the regulated telcom services is not much so bundling DSL with it means they can make DSL pay for the other bundled services.
That's hogwash. Regulated or not, there's still plenty of money to be made on your phone bill. Let's start with all of those bogus fees. Let's not make it sound like AT&T (or any other phone company) is running a charity outfit.

The number one goal of corporate America is to bend the customer over. However, they call it, "maximizing shareholder value" and other cutesy terms.
--
"[Our enemies] never stop thinking about new ways to harm our country and our people, and neither do we." G.W. Bush (8/05/2004)

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
·Qwest.net

Re: What do you expect

I should have said so they can make even more from their regulated services. I agree the Telco's are no charity service except to their battalions of Lawyers, how else can they get their 7 series BMW's.
--
The older I get the more I prefer the company of my dogs over that of man kind.
PDXPLT

join:2003-12-04
Banks, OR

Re: What do you expect

quote:
Their profits on the regulated telcom services is not much so bundling DSL with it means they can make DSL pay for the other bundled services.
Actually, I think it's the other way around. To "bellhead" companies like AT&T, sellling flat-rate DSL service isn't too interesting. They do it as a customer-rentention mechanism: they have to do it, in areas where they have competition from cable MSO's. They don't want to lose the revenue stream they get from selling all those traditional telco services. So they are loathe to just sell DSL by itself. BTW, they would also like to tap into the pay-per-stream revenue the MSO's get from TV, too: thus Project Lightspeed, and FIOS in the case3 of Verizon.

This also goes a long way to explaining why DSL is largely unavailable in areas where the telcos face no cable competition.

CO_Chris
Premium
join:2001-08-28
Broomfield, CO

AT&T being forced by regulators to offer "naked" DSL

AT&T being forced by regulators to offer "naked" DSL? Hmmmmmmm if i recall that is what the FCC said they HAD to do if they SBC wanted to Buy ATT whats the Problem ATT huh?

I know They SUCK thats what
Ahrenl

join:2004-10-26
North Andover, MA
·Verizon FIOS


1 edit

Re: AT&T being forced by regulators to offer "naked" DSL

I don't think AT&T is complaining. I think locals are complaining because AT&T is basically giving away DSL for free in order or force competitors from the market. This is a typical monopoly move.. (Sarcasm) but don't worry they're regulated.(/Sarcasm)

removed
Crisis Management Squad
Premium,VIP
join:2002-02-08
Houston, TX
clubs:

said by CO_Chris See Profile :

AT&T being forced by regulators to offer "naked" DSL? Hmmmmmmm if i recall that is what the FCC said they HAD to do if they SBC wanted to Buy ATT whats the Problem ATT huh?

I know They SUCK thats what
I don't understand this post. Can you please clarify those statements?
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dadkins
Can you do Blu?
Premium,MVM
join:2003-09-26
Hercules, CA

"AT&T says..."


PhoenixDown
-- Wants FIOS
Premium
join:2003-06-08
Fresh Meadows, NY
clubs:

who was actually surprised by this?

Its like a badly written plot where you just know the cheerleader is going to get killed by the guy with the chainsaw when she ventures outside to see what that sound was.
--
NYC Pagans | NYC Pagan Resource

frankenfeet
Premium
join:2001-10-14
Smiths Grove, KY
·Insight VOIP
·Insight Communicat..

Alltel and Naked DSL

Alltel is the only DSL provider in my area, but their website says that an FCC contract prohibits naked DSL. Could this be true, or just a ruse to force you into having an active phone line?
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TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast


1 edit

Drop POTS to save $3; no thanks

Who in their right mind that already have DSL would drop Pots telephone service to save $3? Maybe a few based on some principle or extreme hatred of AT&T. But from an economic and safety(911 service) viewpoint, it makes no sense.
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pb5k
more cowbell
Premium
join:2005-11-16
Glendale, AZ

Re: Drop POTS to save $3; no thanks

Economics maybe, but doesn't federal law require that even inactive POTS lines be able to access 911?

TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Re: Drop POTS to save $3; no thanks

said by pb5k See Profile :

Economics maybe, but doesn't federal law require that even inactive POTS lines be able to access 911?
Inactive, maybe. I just don't know.
But if they disconnect your twisted pair at the local POP, you won't even have dial tone. So no 911 would be possible.
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ftthz
If love can kill hate can also save

join:2005-10-17

...

Great... that better be a month to month rate and not a contract rate

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast

Let AT&T Screw Itself

Many people won't even consider getting DSL to begin with because of the POTS requirement. Charging the same amount for POTS and non-POTS DSL will just deny them the opportunity to gain the customers they have already lost because of this requirement.
--
Tancredo 2008!
markrubi

join:2004-08-11
Edmond, OK

pay $45 or $45

No thanks. I'll be paying $35 for cable net access no contract. I am stuck though until August thanks to that pesky contract.
TheGhost
Premium
join:2003-01-03
Lake Forest, IL
clubs:

Re: pay $45 or $45

Wish I could get $35 cable internet here - Comcast charges $43 with TV service and $60 w/o TV service (at least that is what they told me over the phone).
fiberguy
My views are my own.
Premium
join:2005-05-20
You're not "stuck"... you have the option of buying it out. If you want to leave so bad, why let that fee bother you?

CO_Chris
Premium
join:2001-08-28
Broomfield, CO
·Comcast
·Earthlink Cable Mo..
·Comcast Digital Vo..


1 edit

Hmm 29.99 a montn with Skype

Hmm i have roadrunner for 29.99 and that has been over 2 1/2 years now at this price and Skype for my calls in the US for free till Jan of 07 so phone and HSI for me is 29.99 No thanks ATT your to high maybe you if you get some crack heads to sign up for that price then they are just dumb.

removed
Crisis Management Squad
Premium,VIP
join:2002-02-08
Houston, TX
clubs:

Re: Hmm 29.99 a montn with Skype

Skype won't provide me with E-911 service for $29. I'll keep my POTS line and just use my cell phone for long distance.

CO_Chris
Premium
join:2001-08-28
Broomfield, CO

1 edit

Re: Hmm 29.99 a montn with Skype

Hmmm People have Cell Phone's. Who needs a Home phone anymore. I dont and i know alot of people that do the same.

removed
Crisis Management Squad
Premium,VIP
join:2002-02-08
Houston, TX
clubs:

Re: Hmm 29.99 a montn with Skype

E-911 is not offered in the Houston area on cellular phones... at least not the last time I checked, which was last week on my Cingular handset.

removed
Crisis Management Squad
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join:2002-02-08
Houston, TX
clubs:


1 edit

Re: Hmm 29.99 a montn with Skype

Back to the topic - do you know if Houston Police Department, Harris County Sheriffs Office, and Harris County Constables (all precincts) subscribe to the E-911 service?

Last time I dialed 911 on my Cingular handset, I was sent to a Cingular dispatch center before HPD. Same thing on my Nextel phone, so it's not just "ATT Crap", as you so eloquently state.
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CO_Chris
Premium
join:2001-08-28
Broomfield, CO

2 edits
Cingular handset Thats because They Suck DUH.

See 8 replies to this post

richardpor
Fur it up

join:2003-04-19
Portland, OR

The Naked Truith

The problem is is the total ignorance of regulators and so called consumer activist. It incredibly stupid to think the customer will pay less if one drops the POTS service. One still needs to pay for copper from Central office to home or office. Regardless of one orders POTS or Naked DSL the PHYSICAL phone line from the central office to home or office needs to be activated and still needs to be maintain. This is also why bundling is cheaper. It is easier and cheaper to add another signal on to the existing active service. The same goes for cable broadband.
Just because one want naked broadband dose not mean one is entitled to a free lunch on the copper line.

Tsume

join:2004-02-23
Johnson City, TN
·Embarq
·ViaTalk
·Comcast

Re: The Naked Truith

So you're saying sending two signals over a copper line is, in whole, cheaper and easier than just sending one?

Pass the pipe, dude...
--
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Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
·Qwest.net

The Telco's idea of naked DSL


Ok big boy what will it be for the same price you can see me bundled or naked.

richardpor
Fur it up

join:2003-04-19
Portland, OR

Re: The Naked Truith

Let put even red diaper doper baby can understand. The Telcos sill have to activate the phone line even if one just orders naked DSL. From that on its just adding and other service to an already active phone line. I know, When I move across the hall Verizon deactivated pots and transferred it to my new apartment but could access DSL in my old apartment. I still can get a dial tone on my phone line in my old apartment but I could not make outgoing calls except for a message wanting to know if I want to activate POTS service. For the few day I had both apartments I just strung a Ethernet cable across the hall. I eventually dropped Verizon for Comcast when I found Verizon jerking me around by telling me they could had moved my DSL the same day they moved POTS. Instead they told me I had to wait another 21 days. I told them screw you I am going comcast.

Liars

@dslextreme.com

How Come Verizon Can do it for the same PRICE?

These guys get away with murder! The law say they have to offer, but doesn't specify the price.

I swear the FCC is setting up looholes on purpose!

All crooks. All of them.

dru

join:2000-09-14
Corona, CA

The real reason "Naked" is far more expensive

The $39.95 "bundles" never include the POTS taxes. My last phone bill from Verizon had nearly $23 of these so called "cost recovery fees" tacked on! The $6 FCC Interconnection fee, recovery fees, Spanish American War Tax, FUSF tax, "High Cost Recovery" fees, 911 fees, etc. all add up.

While under the guise of "taxes and fees" the reality is that the Incumbent Telco is the recipient if not sole beneficiary of much of the revenue, including subsidies for "high cost" rural areas, 911 maintenance, and the "interconnect fee" now that they own most of the old Ma Bell, that's just cash in their wallet.

So they have to charge these higher rates for Naked DSL because they can't hide or collect $20 - $24 in "taxes and fees" which is actually just more revenue they "need" to maintain their monopoly. They can still charge FUSF on DSL but that is likely to go away soon.

My honest opinion: Their statements regarding "value of bundled services" is a sham. If you need pots lines, great, but otherwise, you still pay more for it!
vhm_14u2c

join:2006-06-27
East Mc Keesport, PA
·ViaTalk

verizon about a year ago in pittsburgh area

Verizon did not offer dsl-only just over a year ago in the pittsburgh area, even though this is what I requested to use Vonage. The csr kept saying we need to give you a dial tone in order for you to have dsl. I told them, if it could not be offered, I will be leaving thier service(I had DSL and analog phone line through them paying over $80 a month for dsl/unlimited local/caller id).
When I called to cancel my whole account less than two weeks after, a different csr tried to offer me dsl service, supposedly without dial-tone. I told him, I already have my Adelphia cable account to use the internet, and have vonage, and that I have no use for them anymore. I never went back. Verizon is no longer in my vocabulary.

vhm_14u2c
Forums » Getting 'Naked' Costly


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