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How Is AT&T’s Unlimited Wireless Plan Doing?



Popularity of AT&T’s unlimited wireless plan

During the Deutsche Bank Media, Internet, & Telecom Conference held on March 9, 2016, John J. Stephens, AT&T’s (T) chief financial officer and executive vice president, talked about the performance of AT&T’s unlimited plan for U-verse and DIRECTV’s domestic customers.

Stephens said, “We had 500,000 in the first two weeks sign up for the program, and that was really without any advertising.” He added, “And we’ve done a little bit of advertising and the numbers over 2 million now. So that’s the very high end of our customer base, those are the ones who buy both our wireless and our video products, whether its DTV or U-verse. So these are really great customers and we believe this will not only improve their quality of service, but also reduce churn and – and improve overall stickiness of our product.”

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About AT&T’s unlimited wireless plan

The top four US wireless players are Verizon (VZ), AT&T, T-Mobile (TMUS), and Sprint (S). Verizon (VZ) does not offer unlimited data plans for new users.

AT&T initiated the unlimited wireless combo for DIRECTV and U-verse customers on January 12, 2016. According to the company, the plan is exclusively for the consumer wireless segment.

According to the company, the Internet speed may be lower after a line’s consumption of wireless data reaches 22 gigabytes during an individual billing cycle. Additionally, tethering cannot be done on this plan.

For diversified exposure to telecom companies in the United States, you may consider investing in the iShares Core S&P 500 ETF (IVV). The ETF held a total of ~2.4% in some of the US telecom players at the end of December 2015.


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