The Right Price Point

For those of you with available SBC DSL, the price is right: $19.95.

Effective Monday, Nov. 1, SBC Yahoo! DSL will be available for $19.95 a month for new DSL residential customers who commit to a one-year term and subscribe to the popular SBC unlimited local and long distance calling plan, All Distance.

Unfortunately the price is only available to new customers. Other than that, this is an excellent move to increase market penetration.

Our price competition is not CATV, but dial access. Unmetered dial-up access in combination with flat-rate local phone call pricing is functionally identical, for most purposes, to any form of broadband. It’s sufficient, so customers are not willing to pay the $20-$29 marginal cost of changing service.

Aside from the price, the only barrier left to adoption is actual availability.