The $5-per-month hike will apply in all but the states acquired with the buyout of BellSouth. It will affect customers who have the company's three slowest broadband tiers, ranging from 768 Kpbs to 3 Mbps, said AT&T spokesman Michael Coe.

The 1.5-Mbps service is the most common among AT&T's 14.2 million broadband customers.

The hike does not affect new customers who sign up for the slowest broadband service, Coe said.

Customers who signed up under special package promotional deals also avoid the price hike, at least for the term of their promotional deal.

The price increase goes into effect in March, and affected customers began getting notices via e-mail or in their bills late last week, Coe said.

He said San Antonio-based AT&T decided to raise prices for some of its customers "to better reflect the value of our broadband service" as demand continues to grow for high-speed Internet services.

The price increase comes less than a month after investors hammered AT&T's stock after Chairman and Chief Executive Randall Stephenson told a conference that the company saw some weakness in its consumer broadband and wired phone businesses because of disconnections for nonpayment — an area affected by the troubled housing market.

AT&T's shares ended Monday down 12 cents at $38.16.

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