SBC Revises High-Speed Internet Pricing

SBC Communications Inc. said on Monday it was revamping prices for its high-speed Internet services, cutting most regular monthly rates to lure more customers onto higher-speed lines.

The moves come after SBC, the No. 2 U.S telecommunications company, launched a $14.95-per-month promotion for its digital subscriber line service earlier this year, aiming to convert dial-up Internet users and grab more customers than cable competitors.

SBC said starting Tuesday, its basic high-speed Internet service with download speeds of up to 1.5 megabits will sell for $16.99 per month for the first six months. After six months, SBC will charge $29.99 a month, down from its previous charge of $49.95 per month after the first year of service.

For its higher grade service offering download speeds of up to 3 megabits per second, SBC cut its introductory price by $3 to $21.99, and cut the regular monthly charge by $25 to $34.99.

The offers are available only to new customers, and require users to buy SBC telephone service.

Cable high-speed Internet services from providers such as Comcast Corp. typically run from $35 to 45 per month, but also offer faster downloads than DSL lines.

SBC added a record 528,000 DSL subscribers in the third quarter, bringing its total to 6.5 million. The company considers DSL subscribers key to its plans to launch subscription television services widely next year.

Copyright 2005 Reuters Limited.

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