AT&T is now offering DSL internet service for $10/month, something it is apparently trying to keep secret. The cheap broadband, which offers download speeds of 768 kbps and upload speeds of 128 kbps, was part of AT&T's deal with the FCC when it acquired BellSouth in December for $86 billion. The $10 DSL offer is available only to AT&T customers who never previously had AT&T or BellSouth broadband, and it requires customers sign up for at least a year of local phone service. The plan is somewhat hard-to-find on the company's website. AT&T must offer the plan for a minimum of 2.5 years as part of its agreement with the FCC. Separately, AT&T filed a regulatory complaint with the FCC against Cablevision, claiming the company is improperly withholding regional sports programming from its cable video rollout in Connecticut. A Cablevision spokesman responded that the company had not reached a program sharing agreement with AT&T due to "outstanding questions regarding AT&T's violation of prior distribution agreements and about certain aspects of AT&T's technology and the protection of our programming." Also separately, The Financial Times reports that new CEO Randall Stehpenson denies the company is planning to buy a major European telecom company. There has been speculation the company was planning a bid for Vodaphone. He also implied that more large domestic acquisitions were not likely, but said the company does have its eye on international expansion.
Sources: Wall Street Journal, Reuters, Uneasy Silence, Financial Times
Commentary: AT&T, Comcast: How Much Bandwidth is Enough? • AT&T Takes Lead Over Comcast In Broadband Battle • Worldwide Fiber to the Home: Stakeholders And Shareholders
Stocks/ETFs to watch: AT&T (NYSE:T), Cablevision (NYSE:CVC), Vodafone Group plc (NASDAQ:VOD). Competitors: Verizon (NYSE:VZ), Time Warner [AOL] (NYSE:TWX), Comcast (NASDAQ:CMCSA), Qwest Communications (Q). ETFs: Wireless HOLDRs (NYSEARCA:WMH), Telecom HOLDRs (NYSEARCA:TTH), iShares Dow Jones US Telecom (NYSEARCA:IYZ)
Earnings call transcripts: AT&T Q1 2007
Related: AT&T.com • DSL Price Comparison
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.