Instead of offering some value like a speed increase, AT&T just raises the price. There is almost no incremental cost of providing greater bandwidth because customers will not change their surfing behavior much. Competition is suppose to create greater value for customers and lower the price; therefore, I conclude that AT&T does not have any significant competition other than MSOs. Duopolies function similarly to monopolies in most cases. AT&T should be finding new and innovative services to offer customers that increase their revenue. This price increase may help AT&T's financials in the short-term only.
Lack of true competition for residential services is why the U.S. continues to lag in broadband penetration which will manifest itself in other ways throughout the economy.
