AT&T Unlimited Plan launched
In the previous parts of this series, we learned about AT&T’s (T) acquisition of the satellite TV provider DIRECTV (DTV) in 2015. We also learned about the significant cross-selling opportunities this acquisition brings to AT&T’s wireless and wired Internet households, as well as DIRECTV’s satellite TV customers.
Leveraging this cross-selling opportunity, AT&T recently initiated an unlimited wireless combo for DIRECTV and U-verse customers. Note that earlier among the top four US (IVV) wireless carriers, including Verizon (VZ) and AT&T, only T-Mobile (TMUS) and Sprint (S) were offering unlimited wireless data plans to new subscribers.
According to the carrier’s press release on January 11, 2016, “Beginning tomorrow, new and existing AT&T consumer wireless customers who have or add AT&T DIRECTV or AT&T U-Verse TV may get the new AT&T Unlimited Plan, offering customers more data to use for watching video, playing games and surfing the web on their mobile devices.” This offer is subject to certain conditions.
Some details of AT&T’s Unlimited Plan
According to the company, AT&T’s Unlimited Plan is exclusively for the consumer wireless segment. During an individual billing cycle, the Internet speed may be lower after that line’s consumption of wireless data reaches 22 GB. Additionally, tethering cannot be performed as part of this plan.
As we can see in the above chart, the monthly charge for the plan for the initial smartphone is $100, and the monthly charge for the next two smartphones is $40 each. The fourth smartphone in this plan is “free after bill credit.” DIRECTV or U-verse service is required for the AT&T Unlimited Plan.
For diversified exposure to AT&T, you may consider investing in the iShares MSCI USA Minimum Volatility ETF (USMV). The telecom company made up ~1.5% of the ETF at the end of November 2015. The ETF held a total of ~3.8% in telecom players on the same date.