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Verizon CEO says no to big DSL discount

Marguerite Reardon Former senior reporter
Marguerite Reardon started as a CNET News reporter in 2004, covering cellphone services, broadband, citywide Wi-Fi, the Net neutrality debate and the consolidation of the phone companies.
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Marguerite Reardon

If you're a Verizon DSL customer don't expect major price cuts anytime soon. At least that's what the company's CEO, Ivan Seidenberg, said on Tuesday after he gave a keynote address at the Supercomm trade show in Chicago.

Last week, fellow Baby Bell SBC announced a one-year promotional price on its DSL service for $14.95 a month. The deep discount for the 1.5mbps service is less than half what many cable companies charge for broadband. Some analysts have speculated that SBC's market-share-grabbing efforts could launch a price war among providers.

But Verizon's Seidenberg said that his company is holding steady at $29.95 monthly--at least for the time being.

"We already offer broadband cheaper than cable," he said. "So I fail to see the need to do anything on pricing. We also have a replacement product, so I fail to see the need to discount our existing product when we have a new product that is superior to what cable offers. I think we're on a good course."