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AT&T jacks up DSL price $5 per month

Economic pressure forces the company to raise prices, affecting new and existing customers of its three lower-speed tiers of service.

AT&T has increased the price of its DSL service by $5 a month as the company faces slowing broadband growth, the company confirmed Tuesday.

The pricing change will apply to existing and new customers in AT&T's original 13-state territory who subscribe to one of AT&T's three lower-speed tiers of service.

Customers subscribing to AT&T's new U-verse service will not see a change in their bill, nor will customers who have service in the old BellSouth region. The company is not changing pricing on the $10 and $19.95 standalone DSL services that AT&T is required to offer as a condition of its merger with BellSouth. AT&T's Elite subscribers, who get download speeds of 6Mbps also will not see a price change.

AT&T's move to jack up pricing on its DSL service comes a month after CEO Randall Stephenson said that the weak economy was affecting the company's DSL subscription numbers. A spokesman for the company said the price hike was done to "better reflect the value of the broadband service and market conditions."

"Even with this adjustment, our pricing still beats cable's standard pricing across the majority of our markets," AT&T spokesman Brad Mays said in an e-mail. "We're confident that customers will see the value in the service and that we'll continue to grow our customer base."

Here is the breakdown on the pricing changes for AT&T's DSL service:

Bundled with home phone:

• Basic (768Kbps): $14.99 to $19.95

• Express (1.5Mbps): $19.99 to $25

• Pro (3Mbps): $24.99 to $30

• No change to Elite (6Mbps): $34.99

AT&T DSL Direct (standalone):

• No change to Basic (768Kpbs): $19.95

• Express (1.5Mbps) : $23.99 to $29

• Pro (3Mbps):$28.99 to $34

• No change to Elite: $38.99