“AT&T said Wednesday that it has started service in four Austin neighborhoods with an offer to bring its GigaPower fiber-to-the-home service for $70 a month — but with a pretty big catch,” Stacey Higginbotham reports for GigaOM.

“If you want to pay the lower rate you must agree ‘to participate in AT&T Internet Preferences.’ This means, ‘AT&T may use your Web browsing information, like the search terms you enter and the Web pages you visit, to provide you relevant offers and ads tailored to your interests,’” Higginbotham reports. “Looks like AT&T isn’t just trying to compete with Google’s fiber build-out in Austin, but also its targeted advertising business model.”

Higginbotham reports, “This is also a similar model to what Amazon is doing with its lower priced Kindle tablets that cost less if you elect to let the tablet show you ads. [It's $99 per month to retain your privacy.]“

Read more in the full article here.

MacDailyNews Take: Which would you choose?