American telecom operator AT&T, the second-largest U.S. wireless carrier, has responded to the T-Mobile LTE offer with a better data package.
AT&T said its new lower priced 2GB Mobile Share Value plan will be starting at $65 a month, which is $15 off the current 2GB plan for one smartphone with no annual service contract. But you need to re-sign for this. This means, it is not an automated scheme.
Apple, American device major that competes with Samsung, will miss a lot during the 4G tariff war between AT&T and T-Mobile US, analysts warned. Sprint and Verizon cannot maintain their current tariff plans, they added.
Also read: AT&T users can upgrade to new smartphone for $0 down with AT&T Next
AT&T offered the new package one day after the new plan from T-Mobile, the fourth largest mobile operator in the U.S.
T-Mobile on Friday evening said it would double 4G LTE data and tethering to 1GB for basic $50 Simple Choice plans, and more data and tethering for power users.
The Deutsche Telekom owned T-Mobile is also offering unlimited international texting to and from virtually anywhere. There will also be more free international roaming countries where Simple Choice customers enjoy unlimited data and texting and flat-rate calls at 20 cents a minute to 122 countries.
Also read: T-Mobile US doubles 4G LTE data for basic $50 Simple Choice plans
Interestingly, the Friday offer from T-Mobile was a response to AT&T that announced its special cellular rate on 1 February.
Also read: AT&T slashes mobile tariffs to customers with big data plans
The current rivalry between AT&T and Bellevue, Washington-based T-Mobile dated back to January when AT&T offered customers of T-Mobile U.S. $200 credit to switch to its service.
Also read: AT&T offers $200 credit to switch from T-Mobile
Dallas-based AT&T today said its offer includes domestic unlimited talk and text, as well as unlimited international messaging from the U.S. to select countries. In addition, AT&T customers with a compatible device may also sign up for 50GB of cloud storage at no additional charge.
AT&T, which is keen to buy Vodafone plc of the U.K, recently added unlimited international messaging (text, picture and video) to all Mobile Share Value plans for no additional cost. Unlimited international messaging includes messages sent from the U.S., Puerto Rico and U.S. Virgin Islands to more than 190 countries for text messages and 120 countries for picture & video messages.
With Mobile Share Value plans, eligible customers can choose to purchase a phone with an AT&T Next installment agreement with no annual service contract and no down payment. And with AT&T Next, qualified customers can get a new smartphone every year, said AT&T.
“We’re continuing the trend of offering more value to our new and existing customers. Families and small businesses are able to save more on their monthly data plans,” said David Christopher, chief marketing officer, AT&T Mobility.
Adding more customer centric plan is significant for AT&T that trailed main rivals such as Verizon and T-Mobile in the post-paid subscriber growth during the fourth quarter of 2013, said Eric Costa, Analyst in TBR’s Networking and Mobility Practice, in a January research report.
AT&T trails Verizon, T-Mobile in post-paid subscriber growth
Bloomberg reported that competition between AT&T and T-Mobile, which abandoned a merger attempt in 2011, has intensified in part because they use similar technology, making it easier for customers to switch devices between their networks.
Baburajan K
editor@telecomlead.com
