Could AT&T Offer $5 Internet Service?
The telecommunications giant recently outlined two discounted Internet service plans it would offer for four years, according to an FCC regulatory filing. After that time, the subsidized pricing would expire.
What should consumers expect from AT&T’s proposed Internet service plans? Here’s a closer look at what each of these plans offers:
- One plan would provide speeds of up to 5 Mbps per second (or approximately half as fast as the current national average) for $10 a month. The price also would rise to $20 a month after the first year.
- Another plan would be available to consumers in areas where AT&T lacks the capabilities to offer faster Internet speeds. This plan would start at $5 a month for the first 12 months and later increase to $10 a month.
AT&T announced plans to acquire DirecTV in May 2014; at that time, the company said the DirecTV addition could help it “offer consumers bundles that include video, high-speed broadband and mobile services using all of its sales channels.”
“This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens,” AT&T CEO Randall Stephenson said in a prepared statement. “It creates immediate and long-term value for our shareholders.”