AT&T bundles TV, Internet and HBO to attract cord cutters

AT&T (NYSE: T) has put its own spin on the ever-popular package bundle with a $39 offering that includes HBO and its mobile app HBO Go, 18 Mbps Internet access (24 Mbps for an additional $10 a month) and U-verse basic TV.

In addition to the basics, the bundle also offers access to regular U-verse apps and features such as video-on-demand, smartphone/tablet connectivity and "most interactive TV apps," according to an AT&T spokeswoman, who said that the carrier has been "seeing great success" with the package.

Available for new residential customers who sign up for a 12-month term, the bundle aims to attract new customers to U-verse and retain those who might not previously been interested in being tied to a pay-TV cord. Once signed up, they face up to $180 in early termination fees and standard $80 a month rates when the initial offer expires unless they cancel the service.

Also coming out of the customer's pocket is an installation fee of $99 and a $50 activation fee, a story in DSLReports said.

The broadband-premium-basic bundle is something like one in which Comcast (NASDAQ: CMCSA) joined HBO, basic cable and 25 Mbps broadband for $40-$50 a month, depending on the market for one year. The big print on both packages looks good. The fine print looks expensive. For instance, neither includes HD (about $10 a month) or a DVR (up to $15).

"While both offers are slight variations from the norm, AT&T and Comcast seem primarily interested in getting their foot in the door with cord cutters (or younger folks who never had a cord) in order to upsell them on more expensive services," the DSLReports item concluded.

For more:
- See this DSLReports story

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AT&T U-verse broadband, TV users face price hikes
AT&T's U-verse subs top 10.7M in Q4

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