AT&T Cuts Shared Data Plan by 23%
Published By : 19 Nov 2014 | Published By : QYRESEARCH
In face of beginning of the biggest shopping season in the U.S., AT&T Inc. is offering a price cut in its data service plans to lure customers. U.S.’s second largest telecom carrier, AT&T has announced price cut in its 15GB data plan. The data plan will now cost $100 a month. This is AT&T’s second price cut in only two months, and is representative of square off in U.S.’s telecom carriers ahead of the Black Friday of this year, 28 November.
According to a new statement released yesterday from the company, AT&T will offer its existing and new customers a data plan of 15 GB for a limited period offer of monthly fee of US$100. Current price for the same plan is 130 dollar although this price now covers a 30GB data limit, thanks to another promotional stint announced by the company in September.
Compared to AT&T’s new 100 dollar a month plan, Sprint Corp. (S) will provide a data plan of 20GB for 100 dollar a month. T-Mobile had also announced a 100 dollar a month plan in the last month that covered 10GB data.
The new offers have allowed telecom carriers in the U.S. in attracting new consumers, but it has also had effect on profits-shares of these companies. It is due to this that the earnings recorded by AT&T, T-Mobile and Verizon Communication Inc. in the third quarter of this year were all below analyst’s estimates. In effect, Sprint announced that it was cutting its headcount by a further 6.5% after it faced a loss of nearly US$765 million in the second fiscal quarter of this year.