Strategy Analytics: AT&T Sets Pre-CES Sights on T-Mobile Customers Price-Sensitive TMO Customers Most Responsive to $450 Churn Bounty
BOSTON, Jan. 3, 2014 /PRNewswire/ -- AT&T goes on the offensive leading into CES, targeting T-Mobile customers with a New Year promotion and claims of better LTE and customer service. AT&T's offers of $450 per line to T-Mobile customers is a bold move in the increasingly price-competitive US market, a pre-emptive strike as T-Mobile gears up for more Un-Carrier announcements at CES. The latest blog from Strategy Analytics' Wireless Operator Strategies (WOS) service, "AT&T on the Attack: New Year Promo Going After T-Mobile US subscribers", suggests T-Mobile should be concerned that its moves on AT&T's customers have finally prompted such a strong response.
"T-Mobile has had several good quarters in terms of ramping up gross adds and more recently net adds, and provoking an aggressive response from AT&T is a sign of its success but also of challenging times ahead," commented Susan Welsh de Grimaldo, author of the blog. "T-Mobile has the most price-sensitive customer base of the major carriers and even a modest 5-10 percent of gross adds being attracted to the AT&T offer would represent 2-3 percent of lost postpaid revenue. Mr. Legere has done a great job in building value at T-Mobile and will for sure get rewarded handsomely, but this AT&T offer represents a real threat to those disaffected users impacted by inferior LTE coverage and limited 2G coverage as TMO migrates."
Strategy Analytics analysts are available to comment on this and other emerging price competition events. Contact Susan Welsh de Grimaldo, firstname.lastname@example.org, or +1 617-614-0724
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