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SBC Slashes Its Broadband Internet Price; Entry Level Just $14.95/Mo.; Cable, phone rivals assess firm's move amid concern price war could break out.(INTERNET & TECHNOLOGY)
Byline: REINHARDT KRAUSE
SBC Communications' long-term trend of cutting prices hit a low Wednesday.
It slashed broadband Internet service to $14.95 a month for new customers who sign up online.
SBC lowered prices 25% from $19.99 -- its old introductory price for customers of its digital subscriber line, or DSL, Internet service.
Even before the new offer, SBC had the lowest prices for broadband service among cable TV and phone companies. It has steadily lowered DSL prices, starting at $50 a month in 2001-02.
One question is whether the move will spur a broadband price war. It doesn't seem that SBC rival Verizon Communications, the No. 1 phone company, will follow suit. Verizon charges $29.95 for DSL monthly.
"I am concerned that you are playing with fire if you lower the price that low," Verizon Chief Executive Ivan Seidenberg said at an investor conference Wednesday. "DSL is a product that we can get great value from without having to use it as a loss leader. So we don't see that as a strategy for our company."
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