This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

AT&T's Newest Plan to Sign-up More Families

NEW YORK (TheStreet) - AT&T's (T - Get Report) latest pricing discount isn't simply designed to secure more customers for its Next service, it's all about defending the Verizon (VZ - Get Report), Sprint (S) and T-Mobile (TMUS - Get Report) as the battle for customers goes on.

The Dallas-based company on Saturday started offering a lower-pricing plan touted as its "best-ever prices" for families. AT&T said a family of four switching to the provider can get unlimited talk, text and 10 GB of data or more for $160 a month, compared to $260 a month at Verizon. In addition to the savings, the family would get a $400 bill credit for the four smartphone lines of service added. The offer expires on March 31.

Existing customers looking to add a line, and small businesses with up to 10 lines, can also take advantage of the pricing. AT&T said for a family of two, the price per month would be $130; a family of three, the monthly price would be $145. A family needing more than five lines would pay $15 more per extra line.

AT&T said last week that customers who add a line are eligible for a $100 bill credit through March 31.

"These new plans give customers what they want - our best-ever prices on a best-in-class network," said David Christopher, AT&T Mobility's chief marketing officer. "We're making it easy for families who want it all - great service, great value and big bucket of data to share."

There is a catch. New customers must either purchase a phone through its AT&T Next offering, where customers are not beholden to an annual contract but instead pay for their smartphone device through 20 or 26 monthly installments. Customers are eligible to receive a new device every 12 or 18 months, depending on which installment plan they chose. There is no down payment or fees related to activation, upgrades or financing.

Or customers can bring in their existing smartphone or purchase one at full retail price, the company says. (An Apple iPhone 5S at full retail is $649.99, for instance, according to AT&T's Web site.

AT&T is also trying to get users to go for its bigger data (more expensive) plans. But do consumers really need all that data?

"We believe that one of the goals of the price cut was to drive data utilization, smartphone and Mobile Share adoption higher, leading to a limited pricing discount. During its [fourth] quarter conference call, AT&T highlighted that only 30% of its 21 [million] Mobile Share subscribers (29% of total postpaid subscribers) chose data plans with a 10GB or higher data allotment," Jefferies analyst Mike McCormack writes in a note. "Thus, in order to take advantage of the new offer, customers would have to pick a data allotment that is $10-30 more expensive (lower-end plans are 4GB-$70/6GB-$80/8GB-$90) than what they would have originally intended to purchase, implying a lower net pricing discount."

The pricing adjustment is AT&T's latest to get ahead of its competitors in the battle for customers.

"While much of AT&T's recent pricing activity has been focused on competing with T-Mobile for lower-end subscribers, we believe that the new pricing also targets Verizon's prized family plan customers," the Jefferies analyst writes. "AT&T's new pricing over 24 months is $860 cheaper than Verizon's for a comparable 4 smartphone family plan when accounting for the cost of 4 iPhones. It is possible, but unlikely, that Verizon will respond with an update to its EDGE EIP plan that includes service price discounts."

--Written by Laurie Kulikowski in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
S $5.24 0.00%
T $34.41 0.00%
TMUS $32.76 0.00%
VZ $49.55 0.00%
AAPL $129.36 0.00%

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs