In an attempt to dissuade cord-cutters from abandoning cable altogether, AT&T is offering a new package combining basic cable, broadband, HBO on demand and a one-year subscription to Amazon Prime. All of this is being offered for the low price of $39 per month.
Many cable companies are working to retain customers with low-priced bundles. For example, Comcast offers “Skinny Bundles” which combine broadband and a select number of channels including HBO for $49 per month.
AT&T has what appears to be an even more enticing offer. The addition of a year’s worth of Amazon Prime is impressive on its own. A subscription normally costs $99 per year and is being slashed to $39. This price still allows customers to take full advantage of all being an Amazon Prime member has to offer. Two-day shipping, Prime Music, Kindle borrowing and access to Amazon on-demand movies are all included.
Customers will want to read the fine print of this offer, however, if they don’t wish to pay anything above the advertized $39. There are some hidden fees attached. The package locks customers into a one-year contract with AT&T, and a fee of $180 must be paid if a customer wishes to terminate their contract before their term is up. Service activation fees, equipment installation fees, monthly broadcast surcharges, charges for whole-home DVR and full HD along with other taxes and regulatory fees could all add to a customer’s bill.
A subscription could cost a customer $148 in upfront costs and result in a monthly bill of up to $66.99. At the end of the one-year subscription customers will see their bills jump to $90-100, as AT&T will begin to charge the regular fees for its service once the offer is up.