SBC communications, broadband, internet access, price competition

SBC Communications has announced a move to lower the price of broadband Internet access for only $14.95 a month, sharply undercutting competitors, and putting it below the cost of some dialup plans. The move is putting significant pressure on competitors to follow suit and lower prices.

Other companies aren't going down in price without a fight, though. Cox Communications, a large cable operator, argued that offering broadband wasn't all about price, and that its customers don't respond entirely to price motivations. It justifies its higher price for cable Internet access because of the higher speed and greater efficiency of the connection than through a phone service.

SBC is appealing to the nation's 77 million dialup Internet plan users, offering them cheaper rates than they may be paying for dialup. AOL, one of the largest dialup providers, currently costs approximately $23.90 per month. It is also taking advantage of the leaps in technology that allows Internet service to be provided more cheaply. Further, SBC, a phone service provider, is attempting to head off advance competition from cable companies and other providers of broadband Internet service.