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AT&T fires preemptive shot at T-Mobile, offers up to $450 in credit to switch

Ahead of T-Mobile USA's (TMUS -3.7%) Jan. 8 "Un-Carrier 4.0" event, AT&T (T -0.8%) has established a "limited-time offer" providing T-Mobile subs with up to $250 in credit if they switch to AT&T and trade in their current smartphone. Another $200 in credit is given to those who sign for a Next smartphone upgrade plan, buy an unsubsidized phone, or activate a phone they already own. (PR)

T-Mobile, whose shares are selling off in response to AT&T's move, is widely expected to use its event to announce it will pay off the early termination fees of users switching from other carriers and trading in their phones; one report indicates up to $350 in credit will be offered.

Jefferies has argued T-Mobile could be "opening a Pandora's box" that leads to tougher competition and margin pressure for AT&T/Verizon. Today's move arguably suggests AT&T takes T-Mobile's expected challenge seriously. But it's worth noting not all phone trade-ins are eligible for a full $250 in credit, and there are no details regarding how long the promo will last.

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Comments (7)
  • Siwanoy
    , contributor
    Comments (716) | Send Message
    I wonder if today's T move can be interpreted as targeted predatory pricing, trying to force price/share stabilization from a position of market power? Last I looked, antitrust laws were still on the books. Could be very interesting.
    3 Jan 2014, 10:34 AM Reply Like
  • coloneldebugger
    , contributor
    Comments (909) | Send Message
    You really think one of NSA's main gateways is worried about anti-trust laws?
    3 Jan 2014, 11:37 AM Reply Like
    , contributor
    Comments (16) | Send Message
    ATT seems to conduct business as a monopoly that controls the regulators, the Congress, the anti-trust agencies, and the "competition." They seem unable to compete by providing superior service and treating their customers and employees well; rather, they rely on lobbyists and NSA types. Their attempt to acquire T Mobile was such an anti-competitive move that the FCC finally said no. If they can't acquire them, they will try to destroy them.
    3 Jan 2014, 12:31 PM Reply Like
  • tampabay
    , contributor
    Comments (371) | Send Message
    You Had to poke the Giant didn't you T-M?.....Good Luck on that policy
    3 Jan 2014, 10:41 AM Reply Like
  • dostoevsky228
    , contributor
    Comments (284) | Send Message
    This is so laughable...the great Randi Stephenson continues his abominable CEO status. Add this to the 4 billion reasons why Stephenson should have, needs to be fired ASAP. The market sees nothing in this...T as a DOW LAGGARD continues.
    3 Jan 2014, 10:42 AM Reply Like
  • chopchop0
    , contributor
    Comments (4457) | Send Message
    This is awesome for consumers. Sounds like cutthroat competition, airlines style (a few years ago at least).


    Not sure how it will be great for investors
    3 Jan 2014, 01:45 PM Reply Like
  • sl100
    , contributor
    Comments (112) | Send Message
    T and VZ are over charging fro the plans, both these companies are monopolies and people deserve alternatives T-Mobile and sprint are doing a good job to keep them in check. I am planning to switch my plan to prepaid or TMobile/Sprint plans much cheaper than both VZ and ATT
    3 Jan 2014, 09:34 PM Reply Like
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