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Are AT&T and Verizon Overcharging DSL Customers for Slower Service?

Internet Pricing
Paying fiber prices for slow DSL service

Do customers actually get what they pay for? For broadband in rural and underserved urban markets, a report finds AT&T and Verizon now charge nearly the same for slow DSL as they do for high-speed fiber.

Do customers actually get what they pay for? When it comes to broadband services, customers in rural and underserved urban markets are definitely getting much less, which makes learning how to spot hidden fees essential.

1 DSL Priced Like Fiber

A report published by the National Digital Inclusion Alliance (NDIA), a broadband advocacy group, concludes that in recent years, AT&T and Verizon charge almost the same rate for DSL service as they do for high-speed fiber services.

2 How “Tier Flattening” Works

In the past, Internet Service Providers offered “tiered” rates for their internet access which meant that customers were offered lower rates for slower service. However, recently, ISPs have engaged in “tier flattening” by eliminating their cheaper rate tiers for low and mid-speed internet access, with the exception of their slowest speed access. A quick look at Verizon and AT&T’s rates shows that “Each company now charges essentially identical monthly prices – $63-$65 a month after first-year discounts have ended – for home wireline broadband connections at almost any speed up to 100/100 Mbps fiber service.”

3 Who Gets Hurt the Most

According to NDIA’s report, “tier flattening” increases the cost of Internet access in areas where the infrastructure is old and slow. The report argues that neither company, which are essentially the only Internet providers in these areas, are refusing to upgrade the infrastructure. This “victimizes millions of underserved households.” They conclude that, “Affordability is the greatest barrier to increased home broadband subscriptions. In the United States, broadband is becoming faster for some households and more expensive for others.”

4 What the Providers Say

In a statement to Ars Technica, AT&T denied that their prices were unfair. “Attempting to assess internet service offerings by only looking at standard rates does not give a complete picture; the internet service market is more competitive than ever and most customers make their purchases at bundled and discounted rates,” according to the company. Still, it pays to know the best and worst rated mobile carriers before you commit.

Both AT&T and Verizon state that some areas with a small population do not justify deployment of fiber. In those areas, both companies continue to provide DSL networks which are more expensive to maintain. Unfortunately, the economics don’t work in consumers’ favor. The smaller population and higher cost of maintenance means higher prices for customers. NDIA asserts that Internet providers that cannot upgrade the speed of internet access in these communities should offer lower rates since their investment in these communities has been minimal. Unfortunately, like most corporate giants, consumer satisfaction takes a backseat to enormous profit. According to NDIA, “both companies seem bent on extracting as much profit as possible from their lower-speed customers.”

5 Fighting Back on Your Bill

Unfair practices by corporate giants is why companies like Billshark help you negotiate your AT&T bill and advocate for consumers. The Sharks are there to level the playing field and we’d be happy to take a bite out of your Internet bill.

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Frequently Asked Questions

Are AT&T and Verizon charging the same for DSL and fiber?

According to a report from the National Digital Inclusion Alliance, in recent years AT&T and Verizon charge almost the same rate for DSL service as they do for high-speed fiber. The report found each company charges essentially identical monthly prices, $63-$65 a month after first-year discounts have ended, for home wireline broadband at almost any speed up to 100/100 Mbps fiber service.

What is “tier flattening”?

Tier flattening is when Internet Service Providers eliminate their cheaper rate tiers for low and mid-speed internet access, with the exception of their slowest speed access. In the past, ISPs offered tiered rates, meaning customers paid lower rates for slower service. By flattening tiers, providers charge nearly identical prices regardless of the speed customers actually receive.

Who is most affected by tier flattening?

The NDIA report says tier flattening increases the cost of Internet access in areas where the infrastructure is old and slow, victimizing millions of underserved households in rural and underserved urban markets. In these areas, AT&T and Verizon are often essentially the only providers, and the report says broadband is becoming faster for some households and more expensive for others.

How does AT&T defend its broadband pricing?

In a statement to Ars Technica, AT&T denied its prices were unfair. The company said that assessing internet service offerings by only looking at standard rates does not give a complete picture, that the internet service market is more competitive than ever, and that most customers make their purchases at bundled and discounted rates.

How can Billshark help with my Internet bill?

Billshark advocates for consumers against unfair practices by corporate giants. The Sharks work to level the playing field and would be happy to take a bite out of your Internet bill by negotiating it on your behalf.

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See why AT&T and Verizon charge DSL customers nearly fiber prices for slower service, how tier flattening hurts rural areas, and how to cut your bill.

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Do customers actually get what they pay for?.

A report published by the National Digital Inclusion Alliance (NDIA).

In the past, Internet Service Providers offered “tiered” rates for their internet access which meant that customers were offered lower rates for slower service.

According to NDIA’s report, “tier flattening” increases the cost of Internet access in areas where the infrastructure is old and slow.

In a statement to Ars Technica, AT&T denied that their prices were unfair.

Both AT&T and Verizon state that some areas with a small population do not justify deployment of fiber.

Unfair practices by corporate giants is why companies like Billshark help you negotiate your AT&T bill and advocate for consumers.

According to a report from the National Digital Inclusion Alliance, in recent years AT&T and Verizon charge almost the same rate for DSL service as they do for high-speed fiber.

Tier flattening is when Internet Service Providers eliminate their cheaper rate tiers for low and mid-speed internet access, with the exception of their slowest speed access.

The NDIA report says tier flattening increases the cost of Internet access in areas where the infrastructure is old and slow, victimizing millions of underserved households in rural and underserved urban markets.

In a statement to Ars Technica, AT&T denied its prices were unfair.

Billshark advocates for consumers against unfair practices by corporate giants.

Billshark negotiates your bills for you — no savings, no fee.

Billshark helps lower internet, wireless, cable, satellite radio, and other monthly bills.

Our experts handle providers for customers and share updates throughout the process.

Customers pay only when Billshark finds savings on eligible bills.

1 DSL Priced Like Fiber.

2 How “Tier Flattening” Works.

3 Who Gets Hurt the Most.

4 What the Providers Say.

5 Fighting Back on Your Bill.

Frequently Asked Questions.

Are AT&T and Verizon charging the same for DSL and fiber?.

What is “tier flattening”?.

Who is most affected by tier flattening?.

How does AT&T defend its broadband pricing?.

How can Billshark help with my Internet bill?.

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