The Broadband Price War Erupts with Price Slashing

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Perhaps a bad economy is to blame, or maybe consumers are more concerned with getting outside this summer than going online. But whatever the reason, broadband operators are struggling to sign up new customers. Twenty of the largest cable operators and phone companies in the U.S. managed to snag just 887,000 new subscribers in Q2 '08, and according to Leichtman Research Group, the comparatively anemic numbers mark the lowest level of growth seen in the past seven years.

That's good news for consumers, as the lower than expected growth might have sparked a broadband price war . Verizon has said it offer six months of free DSL service to new customers who agree to a one year commitment and also grab a landline package. By taking advantage of the promotion, consumers can pay as little as $45 per month for high-speed DSL and phone service, compared to $65 per month.

But Verizon isn't the only one looking to entice new customers, and AT&T has kicked off a new promotion that guarantees customers its current pricing for two years. Prices range from $20 to $55.

As the broadband market continues to saturate, cable companies could feel the pinch too. Comcast added 278,000 high-speed internet subscribers in Q2, which represents 18 percent fewer customers than the company signed one year ago.

Image Credit: Flickr angermann

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