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AT&T Turns Internet Dial to 10

AT&T next month will introduce a new tier for U-verse customers that will provide up to 10 megabits per second downstream and up to 1.5 Mbps upstream over digital subscriber lines.

The AT&T Yahoo! High Speed Internet Max service (dubbed “Max” for short) will be available for $55 per month when bundled with U-verse TV. The telco previously announced plans to deliver a 10-Mbps tier at the company’s

December analyst meeting

in New York.

The move will allow AT&T to better position its Internet service against cable providers, several of which advertise peak download speeds of up to 20 or 30 Mbps. AT&T’s highest-speed package currently is its “Elite” tier, offering 6 Mbps downstream and 1 Mbps up.

Still, AT&T doesn’t come close to Verizon’s

high-speed FiOS Internet offerings

, which are available at up to 50 Mbps downstream in six states.

AT&T, the largest provider of broadband service in the United States, had 13.8 million broadband lines in service at the end of the third quarter of 2007.