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AT&T basic rates jump 7.4%

Despite the recession, AT&T Broadband is hiking basic subscribers' bills an average of 7.4%, nearly triple the rate of inflation.

The increases go into effect Jan. 1, a month earlier than the company had
been passing through hikes in the past few years.

The 7.4% hike is for basic and enhanced basic service.

Hikes for other services such as digital cable are more moderate, so the
average AT&T subscriber's bill will only rise 5.5%.

The biggest hikes will be seen in Boston, when a fat license fee increase by
a regional sports network is pushing rates up.

But in Dallas and Denver, subscriber bills should only rise around 3.2 -

The inflation rate for the 12-months ended September is 2.6%, according to
the Bureau of Labor Statistics.

In the past two years, AT&T Broadband's basic rates have gone up 4 -5%.

- John M. Higgins