AT&T enhances challenge against Comcast by lighting 1 Gbps service in Chicago

AT&T (NYSE: T) is laying further challenge to Comcast's (NASDAQ: CMCSA) emerging presence in the gigabit fiber-to-the-premises (FTTP) race by officially launching its 1 Gbps U-verse with GigaPower service in Chicago.

As previously announced in May, AT&T will also offer its 1 Gbps service in parts of Elgin, Oswego, Plainfield, Skokie, Yorkville and surrounding communities. 

Eligible customers who subscribe to U-verse with AT&T GigaPower will continue to have access to U-verse TV and Voice services.

Like other markets where it has launched the 1 Gbps service, customers can chose from three tiers: single, double or triple play bundle offerings.

With the U-verse High Speed Internet Premier, consumers can get up to 1 Gbps beginning as low as $120 a month, or speeds at 100 Mbps as low as $90 a month, with a one-year price guarantee.

The U-verse High Speed Internet Premier + TV dual play bundle offers Internet speeds up to 1 Gbps and qualifying TV service starting as low as $150 a month, or speeds at 100 Mbps and qualifying TV service as low as $120 a month, with a one-year price guarantee.

Finally, U-verse High Speed Internet Premier + TV + Voice provides Internet speeds up to 1 Gbps with qualifying TV service and Unlimited U-verse Voice starting as low as $180 a month, or speeds at 100 Mbps with qualifying TV service and Unlimited U-verse Voice as low as $150 a month, with a two-year price guarantee.

The U-verse High Speed Internet Premier and U-verse High Speed Internet Premier + TV tiers offer a one year price guarantee, while the U-verse High Speed Internet Premier + TV + Voice offer a two year price guarantee.

Not long after AT&T announced its intent in April to bring the 1 Gbps service to the Chicago metro area, Comcast said in May that it will offer its 2 Gbps service to more than 2.4 million customers throughout several markets in the region.

Using a fiber-to-the-home (FTTH) architecture, Comcast's Gigabit Pro service will be offered across the region to customers in Illinois and northwest Indiana.

While there is an obvious speed differential between AT&T and Comcast, it will take time to fully see how effective both of their rollouts of gigabit services will be in the region. Interestingly, a number of other providers like CenturyLink (NYSE: CTL) that also provide 1 Gbps services have been seeing customers sign up for lower speed tiers within and outside the areas where they have built a last mile fiber network.

For more:
- see the release

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