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Nov 10, 2008 -- AT&T getting into the metered Internet game

As AT&T has begun offering TV in more and more markets, they're also exploring the idea of metered Internet usage in Nevada. Why? They want to discourage customers from firing them for TV and getting their content for free over the Internet. Clark previously railed about Time Warner doing the same thing.

Contrast this kind of approach with what you find in South Korea. Their Internet costs one-eighth what it does over here and it is typically 20 times faster than ours. For those under 35, they all use the Internet or Internet-enabled phones for free TV content. Nobody pays for TV.

Our Internet experience is one of the worst in the developed world. It's the monopolies that prevent our Internet experience from becoming robust and affordable. Hopefully, Clearwire will change all that.

In related news, many AT&T and Verizon customers are disconnecting their DSL service and going to cable modem. Look for the phone companies to do some serious discounting in an attempt to keep their customer base. For example, Verizon has a triple play bundle with a lead price of $79/month.

Meanwhile, Clark wants to remind you about the femtocell services that are available. Back in June, he discussed T-Mobile @ Home -- where for $10/month you can fire your phone company and get unlimited calling using your cell phone. Sprint has a similar thing called the Airave -- which he discussed in August -- but there's no unlimited calling with their service. Now Business Week reports that both AT&T and Verizon are planning to offer their own femtocells too. No word yet on the roll-out date.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • new articles written on this
    Check out several new articles on msnmoney.com regarding charges for usage over certain amounts. This is getting more and more discussion apparently! (posted on msn as of January 2009)
  • regulation caused these monopolies
    PJ, I think you have it backwards. The reason the cable companies can stick it to us is exactly because they are gov't approved regional monopolies. For internet access, most people have 2 choices--the gov't approved cable monopoly or the gov't approved phone company. Get the gov't out of the market and the consumer wins. Use the gov't to overregulate and create monopolies and everybody (but the monopoly) loses.
  • Metered Internet
    This is exactly why we have government regulation in so many parts of our economy. Large companies are out of control. They let people make decisions who have no conscience, no sense of morality, and who worship only money.
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