Cheap DSL Dooms Dial-Up
Shares of Internet service providers United Online and EarthLink Network were smacked around on Wednesday after SBC Communications, the nation's second-largest telecom provider, announced industry-low pricing for new DSL customers.
SBC (nyse: SBC - news - people ) said that new residential customers who sign up online for DSL can get the service for only $14.95 per month. The limited-time offer is being viewed as a highly negative incident for independent ISPs and cable providers such as Time Warner (nyse: TWX - news - people ), with fears that competitors may resort to price cuts in an effort to retain or gain market share.
The news nailed shares of United (nasdaq: UNTD - news - people ), which just recently surged above the $13 mark for the first time since early August 2004. Last month, after posting relatively strong first-quarter results, the ISP announced it would begin paying a 20-cent per share quarterly dividend, its first ever. Meanwhile, shares of EarthLink (nasdaq: ELNK - news - people ) were also knocked down. Through Tuesday, the stock had closed above $10 for 11 consecutive days, the first
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Cheap DSL
SBC (nyse: SBC - news - people ) said that new residential customers who sign up online for DSL can get the service for only $14.95 per month. The limited-time offer is being viewed as a highly negative incident for independent ISPs and cable providers such as Time Warner (nyse: TWX - news - people ), with fears that competitors may resort to price cuts in an effort to retain or gain market share.
The news nailed shares of United (nasdaq: UNTD - news - people ), which just recently surged above the $13 mark for the first time since early August 2004. Last month, after posting relatively strong first-quarter results, the ISP announced it would begin paying a 20-cent per share quarterly dividend, its first ever. Meanwhile, shares of EarthLink (nasdaq: ELNK - news - people ) were also knocked down. Through Tuesday, the stock had closed above $10 for 11 consecutive days, the first
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Cheap DSL
posted by AM at
9:10 PM
2 Comments:
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Yeah, but there is some fine print as mentioned in this forbes article...
http://www.forbes.com/newsletter/2005/06/03/cz_mr_bm_0603gurupicks_inl.html
"Likewise, the $14.95 price is only good for twelve months, after which time consumers will have to pay SBC's regular $29.95 price."
Also, UNTD knows that dialup is going away. They are focused on building social networking sites and online properties.
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