Plans for traffic to Mexico and Canada
Previously in this series, we noted that two of the largest four wireless players in the US, Sprint (S) and T-Mobile (TMUS), have already launched different initiatives to tap into the traffic—in calls and texts—from the US to Mexico and Canada. We also saw how these initiatives also take care of international roaming costs for their customers while they are in these two countries.
In order to compete, AT&T (T) has also started initiatives for both prepaid and postpaid customers by providing free calling and texting to Canada and Mexico from the US—subject to conditions. These new services include AT&T’s promotional offering in the Mobile Share Value plan as well as $60 GoPhone plan.
Mobile share value
According to AT&T, its promotional Mobile Share Value plans for at least 15 GB (gigabytes) of data include unlimited texting and calling services from the US and certain other locations to Mexico and Canada. These offerings, of course, are subject to certain conditions, and the 15 GB shareable plan has a promotional pricing.
Based on a company press release, these new promotional plans “offer more for customers, including 15GB for the price of 10GB.” As we can see in the graph above, the 5GB shareable data allowance is priced at $50 per month, while the monthly charge for the Mobile Share Value 20 GB plan is $140.
You may take exposure on AT&T by investing in SPDR S&P 500 ETF (SPY), or Technology Select Sector SPDR Fund’s (XLK). AT&T represented ~1.1% of SPY as of July 31, 2015. And, it was ~5.2% of XLK’s holdings on the same date.