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AT&T strikes back with wireless plan

Published 02/16/2017, 05:41 PM
Updated 02/16/2017, 05:47 PM
© Reuters.  AT&T opens its unlimited wireless data plans to non-TV subscribers
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Investing.com – AT&T (NYSE:T) announced Thursday that it will open its unlimited wireless data plan to non-TV subscribers, returning to a plan it ditched in 2011, as competition among wireless carriers heats up.

Previously, AT&T required customers, who wanted an unlimited data plan to subscribe to its DirectTV or Uverse television service.

Competition for customers and market growth has intensified in recent weeks, after rival Verizon Communications Inc (NYSE:VZ) recently announced its plans to offer an unlimited package to customers, which would include unlimited data, talk time and text for $80 per month – $20 dollars lower than AT&T’s proposed price of $100 a month.

Smaller rivals' T-Mobile US Inc (NASDAQ:TMUS) and Sprint Corp (NYSE:S) have been taking market share from both Verizon and AT&T, after adopting aggressive pricing strategies, eliminating monthly data limits and enticing customers with freebies.

In late January, AT&T revealed fourth-quarter earnings, followed by forward guidance which was roughly in-line with expectations but suffered a loss of 67,000 postpaid phone subscribers. Postpaid subscribers represent the most lucrative segment of the sector, however, AT&T said that these losses were low-margin subscribers and not its core focus - high-value customers with higher margins.

AT&T share price closed at 41.25, up 13 cents, or 0.32% but was down in aftermarket trade to $41.23.

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