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AT&T CEO Stephenson Pouts About T-Mobile Deal
Hints Hikes Are Due to T-Mobile Deal Being Blocked
by Karl Bode Thursday 26-Jan-2012 tags: business · wireless · bandwidth · consumers · wireless
AT&T last week raised rates on all their wireless data plans, users now having the option of a $20, 300 MB plan or a $30, 3GB plan (up from $15, 200MB and $25, 2GB, respectively). Speaking during their earnings call today, AT&T CEO Randall Stephenson tried to suggest that the rate hikes were because the government opposed AT&T's planned T-Mobile acquisition. The deal collapse, according to Stephenson, left them capacity constrained -- which then forced the company to raise rates and throttle wireless users. Kevin Fitchard at GigaOM points out how the only problem with that article is that it's not true:

If AT&T were really that constrained by network capacity, it wouldn’t be lowering the price it charges to deliver each byte. AT&T’s price hikes are simply a revenue play. By raising the prices of its data plan tiers, it’s guaranteeing it will get $5 more a month on each new smartphone customer, but it won’t be limiting their usage. Instead it’s actually encouraging its customers to consume more.

There's really only so many times we can point out that AT&T's claims of spectrum crunch and capacity constraints are completely contradicted by AT&T's own publicly-available data, and that if AT&T is suffering any such limitations with their current resources -- it's due to poor network design and implementation. The truth is AT&T's raising rates because they can in an uncompetitive market they dominate. Stephenson's just pouting because for one of the first times in a generation, his company wasn't able to buy government help in keeping it that way.

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primeomega

join:2004-03-11
De Pere, WI

wow, just wow

how much more can people take this. seems like each day I see a rate hike. so glad I moved to prepaid with v-mobile. $25.00 for unlimited data and 300 anytime min. just fine for me! to think I was paying around $70+ with att and my iphone...

bbrkdub

join:2001-10-03
Houston, TX

Re: wow, just wow

If the rumors are true (Verizon requiring LTE only devices later this year, and next iPhone fully supporting T-Mobile's 4G/HSPA+ network), then it'll be interesting to see how AT&T survives with their continued price hikes.
--
Hope this helps...

Morac

join:2001-08-30
Riverside, NJ
kudos:1
Reviews:
·Comcast

Re: wow, just wow

said by bbrkdub:

If the rumors are true (Verizon requiring LTE only devices later this year, and next iPhone fully supporting T-Mobile's 4G/HSPA+ network), then it'll be interesting to see how AT&T survives with their continued price hikes.

Verizon - $30 = 2 GB
AT&T - $30 = 3 GB

Yeah it will be interesting.
--
The Comcast Disney Avatar has been retired.

ANONFAN

@tmodns.net

Re: wow, just wow

TMOBILE $30 = 5GB

KCman

@cingular.com

Re: wow, just wow

I pay $20 for unlimited data at T-Mob. Guess you have to know how to negotiate.

MovieLover76

join:2009-09-11
Reviews:
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To be fair if verizon's pricing isn't that simple you can get 4GB for $30 if you opt for a 4G phone, the reason Verizon doesn't up their 3G data limit is they want to push users onto their 4G network.

Considering the aged technology of Verizon's 3G network it's surprising the network holds up so well, AT&T's 3G+ HSPA has much more legroom. I don't expect the 4GB on a 4G phone promotion to go away any time soon.

Also to be fair to AT&T, yes the prices did go up, but so did the data caps, which I think reflect the increased bandwidth usage of smartphones, paying an extra $5 for an extra gig of bandwidth isn't that bad of a deal. The $20 deal however is a joke and only useful for the most basic user even on an Iphone3 I used more than 300 mb

Morac

join:2001-08-30
Riverside, NJ
kudos:1
Reviews:
·Comcast

Re: wow, just wow

said by MovieLover76:

I don't expect the 4GB on a 4G phone promotion to go away any time soon.

That promo expired on Jan 15th, so it's already gone.
--
The Comcast Disney Avatar has been retired.
gsm1

join:2009-03-10
Renton, WA
this is why I wont upgrade to a smart phone. The data plans are sad in the usa give me a break $20 for 300mb. Even at $1 per gigabyte is still sad.
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
·Comcast

Re: wow, just wow

Do you want to build out your own national cell network? If so, how much will the gigs cost on that

Personally, for a 4G cell network $3-$5 per GB would be wonderful. It isn't landline costs, but it also means that uploading a gig of photos doesn't cost more than buying CDs and mailing them.

Oh, and on my Epic 4G with unlimited data I don't even hit 3GB per month 90% of the time. 2GB doesn't get crossed 80% of the time. Then again, I effectively don't have 4G.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: wow, just wow

said by iansltx:

Do you want to build out your own national cell network? If so, how much will the gigs cost on that

Personally, for a 4G cell network $3-$5 per GB would be wonderful. It isn't landline costs, but it also means that uploading a gig of photos doesn't cost more than buying CDs and mailing them.

Oh, and on my Epic 4G with unlimited data I don't even hit 3GB per month 90% of the time. 2GB doesn't get crossed 80% of the time. Then again, I effectively don't have 4G.

You're ignoring that caps are completely unrelated to congestion issues on a network. Clearwire's method of throttling users at .3 mbit/second at peak hours makes far more sense, and given Verizon's and AT&T's LTE networks have much more capacity they could easily offer unlimited data during off-peak hours without a hitch.

Someone downloading stuff at 3 AM is not hurting anyone else's experience. Similarly the networks are mostly uncongested all day except in the afternoon and evenings. You can see for yourself by doing speed tests at various points in the day. Speeds shoot back up by 10 or 11 PM as people get off the network and go to bed.
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
·Comcast

Re: wow, just wow

Fully aware of this...I've used mobile broadband plenty and seen those trends. But again, how would you finance building a nice, next-gen network? Higher up-front prices or coparatively lower but with overages? Though I don't disagree with you about off-peak bandwidth vs. peak.

OTOH, what I've seen of Clearwire's network is that they don't have their act together at this point. I'll blame it on crappy spectrum; 2500MHz shouldn't be used for mobile services due to its lackluster building penetration. However the fact remains that their service is slower than Verizon and T-Mobile's "4G" networks at this poin, which is why Sprint is working on pushing out LTE.

Simba7

join:2003-03-24
Billings, MT

2 edits

A huge pile of BS

This is the biggest pile of bullsh*t I've ever heard.

So, since at&t didn't get their way, they're passing their temper tantrum (in the form of fees) to their customers?

I bet they were going to raise rates anyway if they took T-Mobile over or not.
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MaynardKrebs
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Re: A huge pile of BS

said by Simba7 See Profile

I bet they were going to raise rates anyway if they took T-Mobile over or not.

[/BQUOTE :

+100

VerizonCynic

join:2006-10-25
Lakewood, CA

are the days of Republicorp numbered?

»www.moveon.org/team/campaigns/republicorp/
moonpuppy

join:2000-08-21
Glen Burnie, MD

Re: are the days of Republicorp numbered?

said by VerizonCynic:

http://www.moveon.org/team/campaigns/republicorp/

And this pertains to this story how?
VerizonCynic

join:2006-10-25
Lakewood, CA

Re: are the days of Republicorp numbered?

ATT trying to buy congress to get what it wants. it failed

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

Re: are the days of Republicorp numbered?

said by VerizonCynic:

ATT trying to buy congress to get what it wants. it failed

Yes, as if that was all the Republicans' fault and the only people opposed to this merger were Democrats.

Right.
--
"Net Neutrality" zealots - the people you can thank for your capped Internet service.
VerizonCynic

join:2006-10-25
Lakewood, CA

Re: are the days of Republicorp numbered?

nothing is absolute. But what I see out of congress on the repub side is not good. I am not saying Dems any good either but its less problematic that what I see from the repub side. Remember the goal of repubs is to get rid of Obama even if it means shooting usa in the foot. The justice dept and the FCC are headed by Obama appointees. The stopped ATT. Then congress sorta piled on. Pretty sure all the top people like Stephenson at ATT are big repubs as they all want romney tax rates. Also I dont recall any congressional votes on this. So who was against it etc was all talk
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pabster

join:2001-12-09
Waterloo, IA
Reviews:
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·Mediacom

Re: are the days of Republicorp numbered?

Don't be foolish. This isn't Democrat or Republican. It's money, plain and simple. And they write the big checks to whoever happens to be in power at the time they need something done (or to not be done). Which happens to be mostly Democrats at the present.
VerizonCynic

join:2006-10-25
Lakewood, CA

Re: are the days of Republicorp numbered?

I dont disagree. But I think my point is correct that there was no vote in the house (Repub controlled now) or the senate (60 votes to do anything under repub fillibuster tactics) and that the FCC and Justice dept headed by Obama people started the ball rolling on stopping this. There are lots of dems and repubs who need re-election money and will take it from just about anyone. And we know from SOPA and Sen Stevens "tubes" comments that most (repub or dem) dont understand the net, wireless or spectrum issues.
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pabster

join:2001-12-09
Waterloo, IA

Re: are the days of Republicorp numbered?

Of course they don't understand these issues. The only thing they understand is greenbacks, and LOTS of them.
VerizonCynic

join:2006-10-25
Lakewood, CA

Re: are the days of Republicorp numbered?

As it was put so succinctly a few years back on an interview with Sen Hollingsworth as I recall..."The legislation is all written on K St. Legislators dont read that stuff. They dont have the time... they are too busy raising reelection money..."
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moonpuppy

join:2000-08-21
Glen Burnie, MD
said by VerizonCynic:

nothing is absolute. But what I see out of congress on the repub side is not good. I am not saying Dems any good either but its less problematic that what I see from the repub side. Remember the goal of repubs is to get rid of Obama even if it means shooting usa in the foot. The justice dept and the FCC are headed by Obama appointees. The stopped ATT. Then congress sorta piled on. Pretty sure all the top people like Stephenson at ATT are big repubs as they all want romney tax rates. Also I dont recall any congressional votes on this. So who was against it etc was all talk

But your first statement was.

And who were the biggest supporters of SOPA and PIPA? Democrats with Harry Reid leading the way.

tcope
Premium
join:2003-05-07
Sandy, UT
kudos:1
said by VerizonCynic:

ATT trying to buy congress to get what it wants. it failed

AT&T was trying to buy _Congress_? How about the FCC and DOJ.
VerizonCynic

join:2006-10-25
Lakewood, CA

Re: are the days of Republicorp numbered?

Its harder to "buy" FCC guys and DOJ guys as first of all they have stricter rules on them than congress, secondly the FCC and DOJ guys do not run for re-election so they dont have huge appetites for cash like legislators and finally the DOJ lawyers have much stricter ethics rules on them as attys.

as for congress approving mergers, as they control the FCC I am sure they could find a way to get it approved. Problem with DOJ is that it is not under as close congressional control like FCC so harder to stop their suit. Also that suit was in the courts and as you know the courts are the third branch of govt ..not controlled by congress
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tcope
Premium
join:2003-05-07
Sandy, UT
kudos:1

Re: are the days of Republicorp numbered?

Um, Congress does not control the FCC or DOJ (really leads in your theory that the DOJ and FCC are harder to buy. But don't tell Sirius that the FCC and DOJ are difficult to buy. They did it for next to nothing and against a promise that they would never merge.
VerizonCynic

join:2006-10-25
Lakewood, CA

Re: are the days of Republicorp numbered?

Well they "control" it in a way. The call FCC guys in for hearings and they have sway over FCC as they created the FCC. they also fund it. »en.wikipedia.org/wiki/Federal_Co···mmission

Funding is a lot of control. Ask the FAA »www.washingtonpost.com/local/con···ory.html

Ahh the good ol days...»en.wikipedia.org/wiki/Bell_Syste···estiture

Interestingly ATT still recalls those days and knew going to court with DOJ was a bad thing as it could not buy the judges. It fares much better with congress and fcc
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wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY

Re: are the days of Republicorp numbered?

said by VerizonCynic:

Well...

You seem to be backpedaling pretty hard here buddy. Perhaps you should go home and rethink your (failed) argument, m'kay?
VerizonCynic

join:2006-10-25
Lakewood, CA

Re: are the days of Republicorp numbered?

nothing in my posts wrong...no one has posted any facts to rebut anything I said
moonpuppy

join:2000-08-21
Glen Burnie, MD

Re: are the days of Republicorp numbered?

said by VerizonCynic:

nothing in my posts wrong...no one has posted any facts to rebut anything I said

I did and the SOPA bill was proof enough.
VerizonCynic

join:2006-10-25
Lakewood, CA

Re: are the days of Republicorp numbered?

You did not give any "facts" in your post. Also my post you first commented on was not about SOPA. I said congress did not vote on ATT deal. You now bring up SOPA which is not part of this thread. I cant find all the vote totals (D vs R) out there (house and sen.) on SOPA but I am sure they were out there. "Biggest" supporters not verifiable unless you try to link cash taken from SOPA cos. thats heard to tally. So I go with total votes. This was cute since you bring up SOPA: »www.americablog.com/2012/01/stor···ney.html
--
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moonpuppy

join:2000-08-21
Glen Burnie, MD

Re: are the days of Republicorp numbered?

What about the fact that UPS got the FCC to pull 2 MHZ of bandwidth from the amateur radio spectrum for a system that never happened? Go look that up.

How about the fact that multiple FCC commissioners go on to lobbying positions after they leave the agency?

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
said by VerizonCynic:

nothing in my posts wrong...no one has posted any facts to rebut anything I said

Nobody needed to! You contradicted YOURSELF....
moonpuppy

join:2000-08-21
Glen Burnie, MD
said by VerizonCynic:

Its harder to "buy" FCC guys and DOJ guys as first of all they have stricter rules on them than congress, secondly the FCC and DOJ guys do not run for re-election so they dont have huge appetites for cash like legislators and finally the DOJ lawyers have much stricter ethics rules on them as attys.

Yeah, UPS had no problem buying the FCC back in 1988.

And FCC commissioners may not be elected but they sure as hell get nice jobs as lobbyist and board members after they leave the FCC.


Be Good

@wideopenwest.com
Sorry, Congress does not approve or approve a merger. Last time I checked they made laws. In AT&Ts case the FCC and DOJ are the approving bodies for a their merger.

Corona
It's cool, I'm takin it back
Premium
join:2000-03-14
Dallas, TX

um

the price of the plans went up, but the actual RATE (read cost per MB) actually went down

See 6 replies to this post
tmc8080

join:2004-04-24
Brooklyn, NY

bring on the price regulation

sorry to bring on the devils advocate postition here, but:

sometimes companies have to be TOLD what to charge rather than letting the DUOPOLY market work-- because apparent you the public are too stupid to stop paying these higher prices!

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

Re: bring on the price regulation

said by tmc8080:

sorry to bring on the devils advocate postition here, but:

sometimes companies have to be TOLD what to charge rather than letting the DUOPOLY market work-- because apparent you the public are too stupid to stop paying these higher prices!

too stupid? pullllease. hard to do when rape / gouge is standard operating policy for all these wireless crooks.

FWIW my phone doesn't do anything besides make/receive phone calls.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Verizon FiOS

Re: bring on the price regulation

said by dvd536:

said by tmc8080:

sorry to bring on the devils advocate postition here, but:

sometimes companies have to be TOLD what to charge rather than letting the DUOPOLY market work-- because apparent you the public are too stupid to stop paying these higher prices!

too stupid? pullllease. hard to do when rape / gouge is standard operating policy for all these wireless crooks.

FWIW my phone doesn't do anything besides make/receive phone calls.

$7/month prepaid tracfone works best (~$20 for 3 mos), plus carrying an android tablet around for free wifi calls (go google!). compare that with $200+ for a tablet/phone plus a data plan which is by the byte usage, plus so-called unlimited (which in reality is 3k minutes), and text which you pay extra for-- either blocks or unlimited. All this can run $80+ on a post paid account, with the average running $120 - $160 per phone and still not have unlimited data. More often than not, a prepaid service is CHEAPER than post paid. If you must keep a specific number get a dirt cheap voip service like OOMA for (AT MOST* $13) a year.

The still little known secret is that you can still carry around a cell phone for emergencies w/o service to call 911-- so a slightly used tablet phone is all you need espeically in a city where wifi bleeds everywhere. Maybe when more people "GO CHEAP" and cancel their cellphone plans in major metro markets they'll actually consider lowering the prices there..
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
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Meh, I'd go for not-regulation. With regulation, Verizon's recent double-data promotion on LTE phones probably wouldn't be doable. $80 for a 20GB data plan isn't great (Millenicom, also available on the free market, sells 20GB of Verizon 3G for $60) but it's not $10 per GB either.

T Fan

@insightbb.com

Not Fired Yet?

I can't believe shareholders haven't canned this DA. He really thought he could buy T-Mobile USA against the will of almost all T-Mobile customers, wireless carriers, back haul providers, consumer advocates, and common sense? He really just lost the company all that cash and spectrum and he still has a job? Wow, I'm glad I don't own any shares of AT&T.

But hey Randall, thanks for giving us T-Mobile USA customers the new AWS spectrum and 3G roaming agreement. I'm happy with the clear calls, less congested network, and lower prices of T-Mobile and I'm looking forward to roaming on 850/1900 3G soon.
pabster

join:2001-12-09
Waterloo, IA

Re: Not Fired Yet?

Well come on, AT&T has been laughing all the way to the bank since the "breakup" of the 1980's. Ma Bell is back and stronger than ever before. And no one is touching her.
etaadmin

join:2002-01-17
Dallas, TX

Re: Not Fired Yet?

said by pabster:

Well come on, AT&T has been laughing all the way to the bank since the "breakup" of the 1980's. Ma Bell is back and stronger than ever before. And no one is touching her.

What a sad and cynic reply... it is like saying that you are glad that Drew Peterson got away with killing his wives.
cybah

join:2000-03-09
Chelsea, MA
Incorrect. AT&T Corp. (1984-2005) went byebye in 2005. Remember.. SBC Communications bought AT&T Corp.(1984 to 2005) and renamed itself AT&T, Inc. (not AT&T Corporation)

This was done so all the laws that governed AT&T Corp (1984 to 2005) went away. AT&T (2005 to today) is an entirely different company, legally, since it was formerly SBC.

Of course one could argue that since SBC Communications was a combined company of Ameritech, Pacific Bell, Northwestern Bell, and other Baby Bells that were RBOC's of AT&T (Pre-1984), its still the same company. But legally its not.

Aaaaand of course this for AT&T landline service, I haven't even scratched the surface of AT&T, the wireless company, which was originally was Cingular, a joint effort between SBC and BellSouth.

The Colbert Report had a fun play on with this a few years ago..

»www.youtube.com/watch?v=rsCp-1hgfxI
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
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Orly? I can get unlimited local and long distance service, where I'm sitting right now, outside the range of cable internet, from five non-AT&T providers that have their own networks (most of them cellular) that cover me. I can get this service for under $50 per month, with minimal setup fees. Text messaging, also unlimited and nationwide, doesn't change this number much.

I'll take post-breakup over pre-breakup any day. If I want expensive, high-quality service I can get a Verizon cell phone. If I want cheaper, potentially spottier service I can go with CricKet. If I want really fast internet in big cities I can go with T-Mobile and pay less, or Verizon and pay more. I *love* the options...

IowaCowboy
100 Percent Mac User
Premium
join:2010-10-16
Indian Orchard, MA
Reviews:
·Verizon Broadban..
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·Verizon Wireless..

Good thing I have Verizon

I ditched AT&T after having them for six years. Their service/call quality was a sinking ship and I abandoned ship (paid ETF) and went with Verizon, who've actually improved their network. Verizon used to be spotty coverage (which is why I left them in 2004 for then Cingular, who actually had better signal strength then VZW at the time) but switched back to Verizon in 2011 because of increasing dropped calls on my AT&T iPhone 3GS. I now have the iPhone 4 on Verizon.
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BiggA

join:2005-11-23
EARTH
Reviews:
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As usual Karl hates AT&T

But AT&T should be slamming the FCC for their disaster of a labyrinthine process for buying spectrum that killed the AT&T&T deal, and has cut the spectrum up into so many little pieces, and ended up with a lot of it owned by spectrum squatters who don't own or operate networks.

See 7 replies to this post

AD7BK
Premium
join:2000-03-23
Havre, MT
Reviews:
·3Rivers Communic..

MaCell Sucks

They suck period. They are trying to become MaCell because they cannot be MaBell anymore... The costs are still low and it's highly profitable to charge that even tho it is less per MB imagine all those who doesn't use all their minuscule allotment. I pay $0.010 per MB it is not possible to go over here since all I got is slow 2g. Well it is but I have to download non-stop... It shows AT&T charges too much anyways. They used to have unlimited but they are too greedy to have that plan.

It can't cost them a lot. He can't go on vacation and live his lifestyle unless he rips everyone off....... To heck with them!
--
The following statement is true...
The preceding statement was false!!--George Carlin
slckusr
Premium
join:2003-03-17
Maumee, OH
kudos:1

Cool

The era of big business punishing citizens for the actions of our government begins.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service

Collapse of the deal left them extra profits constrained...

.... they'd so been looking forward to further control and future monopolization profit margins. Now he's upset and wants to lash out by increasing all the prices anyway.
--
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Paladin
Sage of the light

join:2001-08-17
Chester, IL

Re: Collapse of the deal left them extra profits constrained...

Yes, let's go to the Brit model that fails utterly at approving spectrum for 4G services. Is that the model you wish for?

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Collapse of the deal left them extra profits constrained...

Ban blue cars. Is that the model you wish for?

Paladin
Sage of the light

join:2001-08-17
Chester, IL

Re: Collapse of the deal left them extra profits constrained...

LOL

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Collapse of the deal left them extra profits constrained...

Exactly.

Van
Premium
join:2009-07-08
New Orleans, LA

We see in the comments of all the AT&T

stories how much of this country is just plain idiotic about the world in which we live in.

Claims of capitalism and 'government regulation' and others words are used by people who are incapable of an actual conversation

winsyrstrife
River City Bounce
Premium
join:2002-04-30
Brooklyn, NY

What a surprise

»Recoup

decifal

join:2007-03-10
Bon Aqua, TN
kudos:1
Reviews:
·Verizon Broadban..

...

ATT is lazy, not the workers, just their headquarters digging for profits... Yes, make a profit, but DAMN please put some of the money back into infrastructure already! You have landlines ya know! If you don't want to keep them sell the damn things already!
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: ...

Sell 'em to someone whoo appears to want them...WIndstream or CenturyLink. The prices for service will go up, but service shuld follow suit...right?
decifal

join:2007-03-10
Bon Aqua, TN
kudos:1
Reviews:
·Verizon Broadban..

Re: ...

said by iansltx:

Sell 'em to someone whoo appears to want them...WIndstream or CenturyLink. The prices for service will go up, but service shuld follow suit...right?

For a solid service that I don't have to setup an antenna and pray on a regular basis that it holds a decent speed, yes I could deal with a slightly higher price for dsl as long as its usable and actually fast enough sign me the heck up! I'm paying 60 a month for wireless atm, i'll happily pay that for 3.0mbps service

PHXatt

@cox.net

Money Grab

I see what they're doing.. They added this 3GB tier for the same price us grandfathered unlimited users pay. This was done to entice us unlimited users to abandon our unlimited plans, which are throttled at 2GB, to upgrade (downgrade) to a 3GB tiered plan. How clever you are ATT.

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