AT&T Changes the Way it Packages and Sells Broadband

BOSTON–(BUSINESS WIRE)–AT&T this week announced plans to change the way it packages and sells broadband services to consumers. Rather than marketing speeds “up to” a certain point, the Telco will instead propose to customers tiered offerings, with clearly stated minimum and maximum transmission rates. A new report by Strategy Analytics, “AT&T’s Tiered Service: Taking a Bite Out of Fraudband,” applauds this move.

While the new tiers don’t necessarily represent an actual performance improvement, the transparency it provides to the customer will serve to enhance the overall Quality of Experience (QoE), the report says. It is a step in the right direction, and one that customers will welcome.

“The ‘up to’ marketing strategy has drawn the ire of broadband customers for years,” notes Ben Piper, Director of the Strategy Analytics Multiplay Market Dynamics service. “It is widely perceived as a classic ‘bait-and-switch’ technique, analogous to a supermarket advertising a six pack with ‘up to six cans.’”

There are clearly service issues beyond the Service Provider’s control, including customer equipment and distance from the central office. However, the policy shift ensures that customers get a better understanding of the types of speeds they can reasonably expect. This alone could help AT&T differentiate itself in the market.

David Mercer, Vice-President of the Strategy Analytics Digital Consumer Practice, welcomes AT&T’s move. “We have long urged Service Providers to move toward a tiered pricing model, and are pleased to see AT&T take this step.”