Unbundled DSL

Embarq says it is offering standalone DSL service (that is, high-speed Internet service without any other services like voice bundled in, which some people call “dry DSL,” and some call “naked DSL,” the term you choose probably saying something about your own personal proclivities--I was calling it “bald DSL” for a while, and not by accident) but only to customers who threaten to cancel their bundled services. Now that the company has admitted that, though, the notion they’re using it “only” as a retention tool seems a bit slippery. I mean, any of their customers can have standalone DSL so long as they threaten cancellation. And how would Embarq know if they were bluffing?

AT&T says it is still working on a naked DSL offering, though it was required to have one in return for merger approval from the FCC. Still, I called AT&T customer service recently and asked if I could get DSL with no other services, and they said sure, no problem and gave me a price. I didn’t have to threaten to cancel my existing service. I just asked.

The lack of clear and consistent marketing messages for these offerings is breeding speculation and even superstition among customers. Across the Internet, users tell one another they can get naked DSL by asking AT&T for “Bundle 96.” (Knock on the green door in back and give them the secret password!)

When the chips are down, it seems most carriers would peel apart their bundles rather than lose a customer, and for good reason. The monthly bill and the ongoing customer relationship keep alive the hope for endless upselling opportunities. The landline is the sales staff’s foot in the door. But all of this makes the whole concept of bundled services even more fluid and diaphanous. Triple-play providers will always offer a cheaper price for bundled services, but if standalone services stem line loss, how low will carriers be willing to price them? Will there be one price for users who threaten to cancel their service and another, lower, price for users who won’t pay the first price? And another? What all will be available to those who utter the secret password, “cancel”?

E-mail me at ed.gubbins@penton.com.