The base price for a single user with no contract is now $65 a month, down $15 from the previous price. This price is for customers using the mobile carrier's 4G LTE network plan that includes unlimited call minutes and text messaging. The announcement came just two days after T-Mobile announced that it was raising the price of its unlimited data plan by $10 to $80 a month.
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Greater carrier competition has resulted in better deals for consumers as T-Mobile also recently upped the data allotment for its $50 a month plan to 1GB from 500 MB of data per month.
Verizon, the country's largest carrier, meanwhile has vowed to stick to its premium pricing strategy while offering only minor pricing cuts. CFO Fran Shammo took a shot at his competitor's price tweaking, saying: "We're not going to buy customers... You have to earn customers."
The new pricing strategy for AT&T is a sharp divergence for the company that once relied on a premium pricing strategy like Verizon's. However, as consumers have flocked to lower cost, no contract plans offered by T-Mobile and Sprint (S), AT&T seemingly has had a change of heart.
AT&T stock has seen a $0.16 (-0.5%) decline today while volume sits at 16.3 million shares traded, down 11.3 million shares from its daily average of 27.6 million shares.