AT&T To Create Tiered Internet Access For Subscribers

By Fawn Johnson
Dow Jones Newswires

July 22, 2008: 07:50 AM EST

http://money.cnn.com/news/newsfeeds/articles/djf500/200807220750DOWJONESDJONLINE000309_FORTUNE5.htm



WASHINGTON -(Dow Jones)- AT&T Inc. on Monday said it will bring out a new 
tiered mechanism for giving Internet access to subscribers at different 
network speeds.

AT&T customers currently buy Internet access at various speeds that the 
company delivers through its dedicated phone lines. But AT&T Senior Federal 
Regulatory Vice President Robert Quinn said it is difficult to guarantee 
subscribers' requested speeds for the whole Internet because AT&T can't 
control the nondedicated, shared part of the network.

Quinn appeared at a Federal Communications Commission hearing on digital 
policy held at Carnegie Mellon University in Pittsburgh.

In October, AT&T will establish discrete tiers for subscribers at various 
levels with the goal of giving them Internet speeds in certain ranges.

The new service will change AT&T's current practice of guaranteeing 
subscribers Internet speeds "up to" their subscribed amount.

"When AT&T provides broadband service by speed, it will do so in discrete, 
non-overlapping tiers," Quinn said in written testimony. "We will strive to 
provide service within the speed tier purchased by the customer and, if we 
find that we are not providing service within the ordered speed tier, AT&T 
will take action either to bring the customer's service within the ordered 
tier or give the customer an option to move to a different tier."

Quinn noted that some aspects of Internet speed are outside AT&T's control. 
" One of the challenges associated with providing broadband Internet access 
is the fact that end-to-end Internet throughput that customers experience 
is largely outside the control of individual broadband providers like AT&T."

AT&T plans to change its customer contracts and disclosures to reflect the 
change, Quinn said. Those notices also will "clearly identify any 
limitations on the amount of usage that may apply to a customer's service 
plan."

The notices also will explain the difference between the speed capabilities 
that AT&T provides and the throughput speeds that are dependent on other 
networks.



================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu

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