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AT&T raising basic DSL rates $5

February 1, 2008

AT&T Illinois will raise its prices for basic DSL high-speed Internet service by $5, from about $20 a month to about $25 a month, the carrier said Friday.

The increase is in response to the popularity of the service, driven by video and music downloading, photo sharing and online gaming, the company said. These applications, which require more bandwidth capacity, are causing the company to invest more in its network and pass along the costs to customers, the company suggested.

"Our prices are still in line with the market and much lower than our cable TV competitors," said Meghan Roskopf, a Chicago-based AT&T spokeswoman. Last month the phone giant said it will raise the cost of dial-up Internet connectivity in recognition that most customers are moving to DSL.