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AT&T to Offer DSL Service for $12.99

Dow Jones reports that AT&T Inc. again cut the price of its high-speed Internet service to its lowest level, as the company continues to aggressively woo potential customers.

The service will cost $12.99 for the first 12 months - the first time a Baby Bell has offered DSL for less than the $15 mark - through a promotion available on AT&T's web site starting Friday. The monthly rate, which requires a one-year contract, increases to $29.99 after the promotional period.

The San Antonio phone company, formed from the merger of AT&T and SBC Communications, also cut its mid-tier DSL product to $17.99 from $21.99. After the 12-month promotional period, the price jumps to $34.99.

The Bells continue to aggressively offer a cheaper broadband alternative to the cable companies, which offer high-speed Internet at a much higher price, but also offer higher speeds and have a larger customer base. In August, Verizon Communications Inc. unveiled a $14.99 DSL service, but it featured a slower connection speed. The price cuts have helped the phone companies take a higher share of new broadband customers away from the cable companies.

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