Oct. 6--Broadband Internet access continues to get cheaper as providers aggressively target residential customers who don't have the Internet now or are among the dwindling group of "technology laggers" with dial-up service.

Milwaukee-area residents can now get broadband service for $14.95 a month when bundled with a telephone service contract.

Sometimes referred to as high-speed Internet, broadband is an "always on" fast connection. There is a variety of broadband technology available in most areas, including cable and digital-subscription-line service known as DSL.

Nationwide, about 54% of U.S. households now have broadband service, compared with 13% with dial-up service.

In this region, AT&T and Time Warner Cable have launched intensive marketing efforts aimed at broadband users. During the next few months, mailboxes will be stuffed with special offers.

"It's a real battleground" for the broadband providers, said Kurt Scherf, vice president and principal with Park Associates, a Dallas research firm that specializes in telecommunication.

"There's a lot of fear and trepidation driving these guys," Scherf added.

Last week, AT&T announced a DSL subscription for $14.95 a month when ordered before Dec. 15. The price is for new residential orders with AT&T phone service and includes a two-year rate guarantee with no term contract required.

For $19.95 per month, you can get the same AT&T basic broadband service without having one of the company's telephone plans. But the so-called "naked" DSL line requires a modem, which AT&T sells for $49.99, plus there's a $50 service connection fee, and a cancellation fee if you don't keep the service for 12 months.

"That's about as low as it gets if you want a DSL line and nothing else," said company spokesman Chris Bauer.

AT&T said it was expanding its free wireless Internet service, known as Wi-Fi, to all of its broadband customers regardless of their subscription plan.

Time Warner Cable also is offering a $19.95 per month broadband subscription. But, as with the AT&T plan, it's for the slowest-speed broadband -- which is faster than dial-up service but slower than other broadband connections.

The basic broadband service from both companies is suitable for surfing the Internet and handling e-mail, but its maximum speed of 768 kilobytes per second would frustrate someone who uses the Internet for videos and other large digital files.

The 768 Kbps speed, while relatively fast, isn't guaranteed or necessarily consistent.

"If you are used to what's generally called broadband, this isn't going to be attractive," said Barry Orton, a telecommunications professor at the University of Wisconsin-Madison.

"It's a step up for some people . . . but if you are impatient or are younger than 30, it's going to be much too slow," he said.

Sales hook

The cheap version of broadband is important for Internet providers for several reasons.

First, the Federal Communications Commission, which has regulatory control over telecom providers, requires AT&T to offer the inexpensive service.

It's also a sales hook to get new customers. When you call to order the cheapest broadband available, a sales rep will probably pitch a more expensive service bundled with telephone and cable television services.

"It's just good business. We wouldn't be where we are if we didn't ask customers for their business," Bauer said.

Getting cheap broadband can be a hassle, requiring you to stay on the phone with a sales person for a long time and having to firmly insist on the service terms and initial charges. The deals can vary depending on the sales rep you speak with or whether you order the service over the Internet.

Verifying an order, or making a change to it, sometimes requires hours of waiting on the telephone to speak with someone. Consumer advocates say that you should read the contract and your bills carefully to make sure that you aren't overpaying for the service.

Some of the deals result in significant savings, especially if you were going to buy Internet, cable and telephone service separately.

"For the next six months, especially going into December, the deals are going to be pretty competitive," Orton said. "There are going to be crucial battles in every market" between cable operators and telephone companies selling similar services.

In the current economy, especially, many people are reconsidering how much they spend for Internet service. The providers would rather keep $19.95-per-month broadband customers, and hope they upgrade later, than lose them entirely, Scherf said.

Consumers should compare deals and try to negotiate better terms.

"Save those special offers that were stuffed in your mailbox. Use them to quote prices when negotiating a better deal. . . . The providers will respond to that," Scherf said.

Time Warner and AT&T are experimenting with billing rates based on how much data a customer downloads rather than the usual fixed-price packages with unlimited use.

The companies say that a small group of super-heavy broadband users, about 5% of the customer base, can account for 50% of the network capacity.

Because they use the service so heavily, they should pay more for it, according to those favoring a new pricing method.

Some form of usage-based pricing for customers having abnormally high broadband use seems inevitable, Bauer said.

A Minneapolis broadband provider recently offered a "price for life" for high-speed Internet. But at $31.99 per month, some consumer advocates wondered how long anyone would want to pay that much for a technology whose prices tend to fall over time.

Last year, Internet service ranked 21st on Wisconsin's consumer complaint list, mostly because of billing issues.

"Most of the complaints stemmed from companies' continuing to bill someone even after they've canceled their Internet service. One woman let it go for a year before she realized what was happening," said Glen Loyd with the Wisconsin Department of Agriculture Trade and Consumer Protection.

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