CE-Oh no he didn't! Part XL: AT&T CEO says no one wants $10 DSL

AT&T CEO Randall Stephenson apparently subscribes to a different school of marketing and demand than most others -- speaking with the Atlanta Journal-Constitution, the telecom boss flatly denied that AT&T's $10 DSL plan is hidden on the company's website, and went on to say that "customers haven't been clamoring for it," and that since the 768Kbps "user experience is not what I would consider really state of the art," he doesn't really want to sell it to anyone. Of course, customers don't usually clamor for a product that barely anyone knows is available and that requires absurd hoop-jumping just to get set up, but don't let them pesky facts get in your way, Randy.

[Via Techdirt]

[Jagster @ Aug 3rd 2007 9:07PM]

My in-laws have this same plan (well, same speed anyway) but pay $24 since they were customers from before it was offered at this price. For this a**hat to say no one wants it, why do they offer it for $24 then?

[Danny @ Aug 4th 2007 10:34PM]

Because it actually costs AT&T more than $10 / month to provide DSL, even at 768kbps, to a single customer. Yes, they lose money for each subscriber that signs up for this service, but are required to offer this cheap rate to anyone in the former Bell South region who have never had DSL, by law. Last time I took a business class, the idea was to sell products or services for profit. Can you blame them for not plastering the front page of att.com with this rate?

[BandB @ Aug 3rd 2007 9:08PM]

ars

[I LOVE THE CAPS LOCK KEY @ Aug 3rd 2007 9:08PM]

Last time I checked, $10 56k dial up wasn't state of the art either and yet they still provide it.

[bloody toast=\ @ Aug 4th 2007 5:05AM]

holy shit, dial-up still exists? geez US, you do suck

[ssuk @ Aug 4th 2007 8:36AM]

Dial up exsists in most parts of the world still, especially in parts of a country were Broadband is still unavaliable (mountain regions, remote locations, etc).

[I LOVE THE CAPS LOCK KEY @ Aug 4th 2007 1:18PM]

Dial up is also common with business travelers who need to check their corporate email. Geographically smaller nations like Korea, Japan, Hong Kong, etc tend to have higher broadband speeds but larger nations like the USA, Mexico, Russia, Canada, tend to be slower because to their larger size takes them longer to sread wires from one end to the other, so dial up exists to fill in the holes. Also dial up is popular with the senior citizens whom thing broadband is too fancy, unnessesary, too expensive, or confusing.

[victor @ Aug 3rd 2007 9:10PM]

"But Mr Dent, the plans have been available in the local planning office for the last nine month."

"Oh yes, well as soon as I heard I went straight round to see them, yesterday afternoon. You hadn't exactly gone out of your way to call attention to them, had you? I mean, like actually telling anybody or anything."

"But the plans were on display ..."

"On display? I eventually had to go down to the cellar to find them."

"That's the display department."

"With a flashlight."

"Ah, well the lights had probably gone."

"So had the stairs."

"But look, you found the notice didn't you?"

"Yes," said Arthur, "yes I did. It was on display in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying 'Beware of the Leopard'."

[Emceay @ Aug 3rd 2007 11:21PM]

That leopards got some cheap DSL, I tell you whut..

[everrette powell @ Aug 4th 2007 3:03PM]

nothing like a Douglas Adam humor to prove the ridiculous.

[Big Ed @ Aug 3rd 2007 9:12PM]

AT&T sure has the EDGE in this argument.

[JP @ Aug 3rd 2007 10:27PM]

I see what you did there.

[Fenway Beer Man @ Aug 3rd 2007 9:14PM]

In related news, McDonalds has discontinued "free iPhone Fridays", a promotion which allowed customers to receive a free iPhone with any extra value meal purchase. McDonalds CEO Jim Skinner cited poor sales for the decision. "We sold millions of value meals over the lifespan of the promotion, yet we have yet to have one customer claim their iPhone. It is obvious that there is just no demand for free iPhones."

[Bogdan @ Aug 4th 2007 12:04AM]

spot on!

[Christopher Price @ Aug 3rd 2007 9:16PM]

If they actually offered it all AT&T markets, not just former BellSouth regions, there might be a reasonable sample size. Not to mention that if you've ever been an AT&T DSL customer, you don't qualify.

Take that out of the equation... I'll have 25 people ready to sign up tomorrow, AT&T...

- Christopher Price
http://www.phonenews.com

[Ordeith @ Aug 6th 2007 5:07PM]

It isn't available out of the bellsouth area? Better not tell AT&T.

People in California that have been services by AT&T/SBC/AT&T again for most of their life are able to get $10 DSL if they get to the right place ont eh website. It doesn't actually appear AT&T's automated sign up system is checking geography when it activates the service.

[rawfishandbeer @ Aug 3rd 2007 9:27PM]

Just when I thought I couldn't hate AT&T any more than I already do...

Wow, just... wow.

[Kevin @ Aug 3rd 2007 9:34PM]

I'd like his email address to suggest otherwise. I should pick up the 10$ DSL - I'm youthful and might need a backup when my cable internet (newly comcast - FL) has it's hick-ups.

[Christy @ Aug 5th 2007 3:00PM]

You do realize that Comcast Broadband is now kicking customers who use the computer too much to the curb. Recently on the news in Georgia. That is why I will not use Comcast for anything other than cable TV.

[Kevin @ Aug 6th 2007 1:12PM]

I torrent a lot. Never have a problem. When I do, I'll leave Comcast.

[John @ Aug 3rd 2007 9:35PM]

Just look at that carefully formed, shit-eating grin of his...total bastard.

[Emceay @ Aug 3rd 2007 11:25PM]

Hey, that shit-eating grin of his is state-of-the-art.

As is his 'hands down' gesture signifying control.

[LJKelley @ Aug 3rd 2007 9:54PM]

What complete bullshit. I know many people that want faster than dialup and $10 a month would suit them as well. 768Kbps which is much faster than 56Kbps for the same price (if not less) than most dialup providers.

AT&T just wants people to spend more...

[Huy @ Aug 3rd 2007 10:26PM]

I could use cheap DSL. I know people that would buy this service. How do I go about jumping through these hoops to get this service?

[taoprophet420 @ Aug 3rd 2007 10:30PM]

I like the AT&T $19.99 plan be under the article. I don't see the point of having a plan u don't promote at all.

[Alex @ Aug 3rd 2007 10:58PM]

All I know is that this $10 DSL plan finally got my dad off dial-up. He couldn't argue against nearly 14 times the speed for less then $2 more then what he was paying per month for dial-up. This plan is not for everyone (I'm happy with my 20Mbps/20Mbps symmetrical connection) but it is one hell of a deal for people still on 56k.

[Colin Kelly @ Aug 3rd 2007 11:02PM]

He loses money when he sells it - what would you say if you were the CEO of the company. They offer it because they're required to by law (anti-trust agreement in place for the Bellsouth merger). Sucks they don't put it front and center, but I wouldn't if I were them either :)

[james @ Aug 4th 2007 10:48AM]

how does he lose money? He's not selling anything to you but an existing connection. There is no tangible product that is manufactured.

He just doesn't make AS MUCH money as he would if he sold it for $20. Make sure you define Greed for what it is.

[Colin Kelly @ Aug 4th 2007 9:24PM]

DSL loops cost so much to be installed. I don't know the exact rate, but I've heard an upwards of $75 in labor to install the loop itself. Again, I claim to be no expert - but I know that the activation of the service with labor has a pricetag involved.

[Danny @ Aug 4th 2007 10:34PM]

Sorry James, but you are wrong. ISPs such as AT&T in this case have to pay for the bandwidth they sell, not to mention installation costs, equipment costs, support costs, etc... Do some research before spouting off next time.

[kyle allen @ Aug 3rd 2007 11:16PM]

I would love 10$ dsl!! right now im getting like 27kbps!!!

[Emceay @ Aug 3rd 2007 11:17PM]

Meh.. When you transfer kilobytes over mobile phones and get charged whole dollars.. or when the PS3 makes a big $100 stink over having a paltry extra 20GB.. Is it really any different? Storage and Transfer are always massively inflated compared to their real worth.. That doesn't seem to stop much of anyone from paying for it, though. $10 DSL seems like the price broadband should be, but when they've got ludicrous fiber optic speeds that you'll never fully utilize, why bother? It's like selling a smart car.. For most purposes it's all you'd need, but social scrutiny and the occasional need to carry people and objects rule it out.

[Galley @ Aug 3rd 2007 11:23PM]

Hey, at least it's better than the 24Kbps dial-up my friend in Bumfuck gets.

[RyogaHibiki @ Aug 4th 2007 12:58AM]

He's an ass!

[SimbaDogg @ Aug 4th 2007 1:11AM]

what a prick...

[mark @ Aug 4th 2007 1:15AM]

Actual message from ATT yesterday after 4 times before leaving I verified and was told my phone would work in Europe this week.

"It should be working. Please power your phone off and back on. To place a call, press and hold the 0 key to get the + symbol. Then dial the country code and number. If this doesn't work call ATT International Customer care at 800-335-4685"

Besides the hilarity of how can I call the US-based 800# if my phone can't call the States; the number provided was not toll-free from Europe!

But you know what? No one cares and we'll all just keep using ATT as they all (Verizon, Orange, etc. too) suck rubber donkey lungs equally well.

[billy bob thorton @ Aug 4th 2007 1:22AM]

they don't loose any money on those plans. are you kidding? the only money they are loosing is the extra $10 or $20 they would rather have. they make up plenty of the money with their contracts, "billing mistakes", flat out lies by CSRs, etc. I had to monitor my online account every month to see what they were trying to add to my account. sometimes it was a few cents, other times it was $10s or $100s of dollars. And any mistake they made that you did not correct right away is sent express over to collections. I don't think people want or really like AT&T services, they just don't have the cash for cable or simply don't have any other choices. It's really sad that the FCC and FTC are looking the other way while history undoes itself. AT&T couldn't be trusted the first time around. Now they are another company all together but with the AT&T name and sprinting down the monopoly path again. My household is now 100% AT&T (and related) product free.

[Colin Kelly @ Aug 4th 2007 10:07AM]

Loops cost money, sir. You think a unionized tech is going to volunteer free time to go and install a loop just because it's discounted? When this schmuck sells a $10 dsl line, he makes nothing unless the customer keeps it through something stupid like the year 2012. I'm not saying they're losing their shirt, but how could they make money off that...

[nickdeng @ Aug 4th 2007 3:13AM]

Really, u don't feel much differents if you don't UPLOAD or PLAY ONLINE GAME... I'm using this $10 plan now for regular web browsing and emails, download speed at 86kbps and fast to me. great plan to me. I had $19.99 and $24.99 plan before... all I see is I had been charge more for the same( I feel on speed )

Ask few qestions to youself:

Do you really see the speed? sometime?

NO! you don't see that or the house line condition if not good and you don't get the speed either (which you paid for)

Did you notice that?

NO. But you still get charge for that (speed) you did not get.

[Korsakow @ Aug 4th 2007 6:42AM]

Damn right, reading Engadget on a 768Kbps line just isn't state of the art anymore.

[Ted Lee @ Aug 4th 2007 7:18AM]

I got the $10 AT&T DSL plan. Here's a little secret for you. AT&T can't throttle back their DSL in most locations. When the tech came to set up my DSL connection, and he checked my system once it was hooked up, he said "OK, you're getting 1.5mbps down and 384kbp up". I told him (being the honest schmuck that I am) that I had the $10/month 768k plan, and he said "we don't have any way to throttle back the connection, so you'll get the extra speed at the $10 price". Nice.

Now, I don't know if this is true in all locations, but it was in mine (I also can't get anything faster than 1.5mbps down, due to my location). Of course, AT&T could suddenly figure out how to slow down my connection, at which point I'd have a pretty crappy connection. But for 1.5mbps down, and $10/month, I'm happy.

[Jason @ Aug 4th 2007 8:34AM]

on the one hand he sort of has a point about 768 not being state of the art, but the average internet consumer has no use for "state of the art".

I wrote in a blog on this that I wonder if enough high ranking execs got in a room together, they could convince themselves that the world is flat. Morons.

[Frankenstein Black @ Aug 4th 2007 9:40AM]

I don't get the anger here. Is the $10 DSL plan going away? Well if its not, the best way to give em the BIG FU is to (do the dig, same as any bargain hunter or coupon clipper does) and sign up for it! You get $10 DSL and AT&T gets "heartburn" for having to give it to you, I guess?

[ADR @ Aug 4th 2007 10:09AM]

I remember a few years ago when I paid $30 for AT&T 768 DSL. I'm a little tired of paying COX $42.00 a month for a suposed 5mb cable line that seems to be slower than dialup at times.

It is true that you can get the 1.5 mb line even if you order the $10 service. Depending on how close you are to the junction box and how new it is. They just installed fiber boxes next to all of the houses and apartments in my area. I'm not spending $100 a month on interent access but the DSL just might be faster.

Oh to live in Europe or Japan where you don't get it up the ass from companies selling internet service. $30 a month for 50mbps or $10 for 20 in Japan. Hell many areas in Japan have free broadband and you just pay for an upgraded connection.

In the USA our telco monopolies are just to busy ripping us off for crappy service.

[Redi Killowatt @ Aug 4th 2007 10:57AM]

Didn't anyone else wonder why the CEO of AT&T couldn't get his brother a better job in the company? That has to be an awkward family picnic.

And I love when the upper management types spend a day on a ride out with the line employees. I'm sure they get a realistic picture of a typical tech's day after 8 hours per year.

[reductant @ Aug 4th 2007 3:52PM]

Comcast and ATT/BellSouth/Cingular are the worst companies I've ever seen, raping their customers. It should be against the law to require a customer to sign up for one service to use another service or charge more for one service if not signed up for the other than it would cost for buying both services. NakedDSL and cable internet without the added useless landline and cable TV should be available to everybody!

[Justin @ Aug 4th 2007 8:13PM]

Well... I have to say I am wanting the 10$ DSL. I have been trying for over 1 month to get my billing straightened out. When I called to ask about the 10DSL they talked to me like I am stupid the after talking 4 or 5 different people they finally signed me up for it. Everything was installed and seemed to be funning fine... then the bill comes. DSL 42.95$ since then I have spent 5 days and talked to 15 different people and I still have not gotten this corrected. I am at the point where I do not know what to do and don't have the time to keep calling them over and over again.
Does anyone have any suggestions?

[underdog5004 @ Aug 7th 2007 9:29PM]

Post your experience on consumerist.com!

[Greg Smith @ Aug 4th 2007 10:21PM]

No one signs up because it's fake. At lease in our area. I tried to sign my parents up for this option, they qualified on both counts. However the web site then went on to ask their phone number to check to see if DSL was available in their area. It said, sorry no DSL available in your area. I then tried to sign up for the more expensive plans, same question, what's your phone number. Low and behold DSL was available now!!!!

They live the middle on a large city. The reason I had to try to set them up was because the web site does not work at all on Mac with Safari. ATT is just a bunch of liars and cheats reneging on their promises

[digitallysick @ Aug 4th 2007 10:43PM]

This is garbage, they also make you switch your phone service to get the 10 dollar dsl. They won't let you have it if your with an alternate provider. Even if you have at&t cell service, they won't give you the 10 dollar dsl.