SBC Communications said it will cut DSL prices to just $19.95 a month for people who sign up for its full unlimited local and long-distance phone plans. The bundle is aimed at competing with cable TV networks' Internet phone offers, which are draining away the big phone companies' core local business.
The total package, with the $49 phone service, is about $70. Compare that to getting a $35 cable modem subscription with a $25 Vonage service. SBC winds up being a little more expensive, but comparable.
The wild card is still video. I'm a dinosaur, and don't even subscribe to cable TV, so cable Internet isn't that attractive to me. You still either have to sign up for a basic cable package, or pay more than DSL costs. But for people who want the whole bundle, cable still seems the way to go.
I know these falling prices are only possible because of all the cross-subsidization of services, but I sure wish I could buy DSL without paying for a phone line that I don't use. My personal opinion is that cell phones will ultimately undermine regular phone companies and voice over IP services.