Sign in Subscribe
Telephone services

AT&T Expands High-Speed Services Strategy Amid Company-Wide Job Cuts

Strategic Insights

— 1 min read

As part of its broader efforts to deliver high-speed services, AT&T announced an expanded strategy at the NetWorld+Interop forum, amidst a backdrop of company-wide job cuts aimed at saving $2 billion. Key to this strategy is the introduction of digital subscriber lines (DSL) over phone lines, which will be rolled out to over 100 markets by the end of next year, leveraging services from Rhythms NetConnections and Covad Communications. This development challenges the long-held high-speed hopes of local phone companies like BellSouth, which have so far only offered DSL in a few markets with limited availability.

Key Takeaways:

  • AT&T plans to roll out DSL services to over 100 markets by the end of next year, initially buying its service from Rhythms NetConnections and Covad Communications.
  • The DSL service will offer download speeds up to 768k bps and cost $59 to $79 a month, while a faster service with speeds up to 1.5 megabits will cost $149 to $469 a month.
  • BellSouth's DSL costs $60 a month but is only available in a few markets with limited availability.
  • AT&T will also seek to deliver high-speed access through wireless means, which does not require costly construction.
  • The company will have to navigate the limitations of cable systems, acknowledging that DSL has its own strengths.
  • AT&T's broadband strategy is part of a broader effort to provide high-speed video, voice, and data services to a large chunk of consumers.

Statistics:

  • AT&T plans to deliver high-speed services to a huge chunk of consumers through cable modem and DSL.
  • DSL will offer download speeds up to 768k bps and 1.5 megabits.
  • BellSouth's DSL is only available in a few markets with limited availability.
  • The project predicts 1 million DSL lines by the end of next year (as per Telechoice report).
  • The Yankee Group report projects about double the number of cable modems by the end of this year.

Sources:

  • Kathleen Earley, president of AT&T Internet Services
  • NetWorld+Interop forum
  • Telechoice report
  • Yankee Group report
  • AT&T press release
  • Michael E. Kanell article

Read more