It’s pretty clear now that big telephone companies like AT&T and Verizon are positioning their DSL broadband product as a value play against their cable broadband competition.

Case in point is AT&T’s latest DSL promotion (via BroadbandReports.com), which offers 3 Mb/s DSL for $15/month and 6 Mb/s for $20/month. Both deals are based on 12 month terms.

AT&T and Verizon have been losing traditional DSL customers by the thousands for the past few quarters. Some of those defections are converts to these company’s premium broadband brands, U-Verse and FiOS, but many of them are also churning away to competing cable broadband offers, which advertise much faster speeds than PODS (plain old DSL service).

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They really have no choice to stop the bleeding than to position DSL as the value option for broadband. The long term prospects of such a tactic aren’t promising. You’re left with a customer base that looks for the cheapest, either from you, or someone else. Makes you wonder how long they intend to keep these customers.

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