AT&T retaliate to T-Mobile's success

The wireless carrier price wars continue this weekend as AT&T and T-Mobile respectively announced price cuts and new data incentives for subscribers.

Looking at T-Mobile, some of the most interesting changes that the company has made to its plans include an extra '1GB of 4G LTE' data added to every user's account for free and unlimited global texting from the US and while in 122 destinations abroad. At the same time, the company raised the price of its unlimited 4G LTE data plan from $20 to $30.

As for AT&T, the country's second largest telecommunication provider announced price cuts in its single line and two-line no-contract accounts. These price cuts include a $15 reduction in the single-line Mobile Share Value plans. AT&T additionally, has started to offer $100 credit for new postpaid line activations.

T-Mobile spent years losing customers to market leaders Verizon Wireless and AT&T but began aggressively adding subscribers last year by doing away with contracts and criticizing other service providers. However, the process hurt its margins and widened its loss in the fourth quarter and has resulted in them making minor price increases.

In response to T-Mobile's success, Verizon and AT&T are also trying to move away from contracts and lower prices on certain plans. Regulators have praised T-Mobile for making the market more competitive but others feel that maintaining such low costs may be unlikely in the long run as a price war ensues among 3 of the largest telecommunication firms in the country.

  • Tarun Pramod