Category Archives: AT&T

AT&T

AT&T To Launch Its First Tablet to Deliver Non-Stop Entertainment

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AT&T Tablet

 

AT&T, the second-largest phone service provider in the US is now promising complete entertainment to its users. And this time, the company has done so with the announcement of its very first tablet – the AT&T Primetime.

The Announcement

The announcement by AT&T says that the Primetime tablet is going to be launched on 25th August 2017, which is on Friday. Thus, as per the prepaid local phone service provider, customers are going to get access to non-stop entertainment, quite soon!

The tablet and its related offers are available for both business and consumer customers of the giant phone service provider.

AT&T Primetime is available at offers that can be had for $10 a month for 20 months along with the AT&T Installment Plan or customers can also get it by paying $29.99 with a contract of 2 years.

The best feature of the tablet is considered to be its TV Mode that allows users to turn their tablet into a portable TV with video apps like DIRECTV.

With such innovations being introduced by the phone service provider, it is quite evident that the telecom giant has moved ahead in the race with its usual competitors providing mobile and home phone services. The company has been very innovative in introducing new services and technologies that give the best customer experience.

This is the reason why AT&T has still maintained its name in the US telecom market.

Here are some of the prominent features of the AT&T Primetime Tablet:

  • Display: 10-inch full HD display for better experience while watching videos, movies, photos, etc.
  • The all-new TV Mode feature to let the user’s access their favorite video apps like DIRECTV with just one swipe, and enjoy their own portable TV.
  • Battery: The tablet comes with a battery of 9070 mAh that allows users to surf the internet, listen to music, watch videos, or surf the internet through Wi-Fi for about 11 hours.
  • With Dual Bluetooth Audio Streams, the Primetime tablet becomes one of the best gadgets for traveling. This is because the tablet can play media through 2 Bluetooth headsets or speakers.
  • 5 MP primary and secondary cameras.

The tablet, introduced by the giant prepaid local phone service provider, offers the best experience even for the enterprise users.

Thus, the Primetime tablet by AT&T can be your complete package to entertainment and is best suited for every kind of customer.

In A Nutshell

With the launch of the new tablet, AT&T is surely going to expand its horizons. The launch of Primetime can be a game changer for the giant phone service provider with the feature of the TV Mode.

For people looking for a high-quality tablet with some good features, the Primetime tablet can be one of the best picks.

However, due to the lack of some features, many users might turn it down. Thus, it is still to be seen what response the tablet gets after the launch.

AT&T, Time Warner

AT&T To Split Its Telecom and Media Divisions after Time Warner Merger

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AT&T - Time Warner Merger

The first announcement about its $85.4 billion acquisition of Time Warner was made last October by AT&T.

Since then, the two companies have been under a great storm of controversies and talks and the merger has greatly been doubted by far.

With President Trump’s statements against the merger and the opposition by Democrats, the merger seemed to be an impossible deal.

However, with the recent oversight given by the CEO of the huge prepaid phone service provider, Randall Stephenson, things seem positive about the merger talks.

The Oversight

The oversight given by the giant mobile and affordable telephone service provider tells us that the company is going to split its telecom and media assets after merging Time Warner Inc. Thus, AT&T is planning on running as two separate divisions after the merger.

According to experts, the company will be split into two different units with the telecom services and DirectTV by AT&T in one unit and the assets from Time Warner media in another.

Under the Time Warner media unit, the company is said to include channels like HBO, Warner Bros., CNN, etc. by Time Warner.

With this split, it has been announced that the chief strategy officer of AT&T, John Donovan will be promoted to the position of CEO of the telecommunications unit of the company. On the other hand, the entertainment chief of the giant prepaid phone service provider, John Stankey will head its media assets.

It has been mentioned that Randall Stephenson will still be the CEO of the giant mobile and affordable telephone service provider. And besides this, no other leadership decisions have been made yet.

This has been confirmed by AT&T spokesperson Larry Solomon. “No decisions on organizational structure or leadership have been finalized,” he told CNNMoney in an e-mail. “Randall and [Time Warner CEO] Jeff [Bewkes] are working through that. Randall will remain chairman and CEO of AT&T once the deal closes”, he added.

This shows that Stephenson is going to head the giant prepaid phone service provider with two unit chiefs working under him.

While talking about the merger, Stephenson said, “This is a perfect match of two companies with complementary strengths who can bring a fresh approach to how the media and communications industry works for customers, content creators, distributors and advertisers”

The merger talks have been on since last year and things have started to heat up lately. With the giant prepaid phone service provider still waiting to complete the Justice Department’s antitrust review, the big merger has been pending.

However, AT&T seems all set to play its cards as soon as the merger is finalized.

In A Nutshell

To sum it all up, the AT&T and Time Warner merger is going to be a big deal as can be inferred from the rounds of criticism, hype, and controversies that the matter has been dragged through.

The two huge companies are planning on changing the world of telecommunication and cable TV through this merger. Though the merger is still pending to be finalized, we’ll have to wait and see how it turns out for the telecom market in the US and for the two companies involved.

AT&T

AT&T Soon To Start With Extra Charges for Privacy

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AT&T

So now, as per AT&T, its customers will have to pay extra for their own privacy! And that is evident from the latest buzz going on in the world of telecommunications.

The famous mobile phone service provider has been in the news for its merger talks with Time Warner that has been under a cloud of doubt. Amidst all the chaos that the telecom giant has been facing because of the merger talks, the company has announced that its ‘privacy surcharge’ is going to make a comeback.

The Announcement

The announcement is said to have been made by a senior executive from AT&T and is something that the company has already tried and tested in the previous year.

Last year, the huge mobile and cheap local phone service provider started charging for the privacy of its customers if they opted out of the Internet Preference program by AT&T.

The charges were quite high and hiked the monthly bills of the customers to a sum ranging between $531 and $800 in the first month. The changes were made quietly by the company and were quite criticized by customers and privacy advocates.

“We got an enormous amount of criticism from privacy advocates when we rolled out in Austin, Texas, an ad-supported Internet service…Privacy advocates screamed about that,” said Bob Quinn, the Senior Vice President of AT&T, talking about the previous year’s privacy charges.

To avoid the heavy criticism and to seek the regulatory approval for the AT&T – Time Warner merger, the mobile and phone service provider had stopped with the continuation of those charges.

The company has stated that the new privacy charges are a way to give more control to the customers. However, the expensive charges are an exact opposite of this statement.

Also, it has been seen that even after being charged extra to protect the privacy of customers, the mobile and cheap local phone service provider doesn’t really stop collecting data from their customers.

When the privacy charges were deducted by the telecom giant in the previous year, the company suggested them as a discount to the customers. So, it can be said that the company is actually trying to manipulate the customers and privacy advocates by counting the vague positive impacts of the increased charges.

The statements don’t make a difference to the fact that paying extra for their privacy is what lies as a great burden on the shoulders of customers.

If the phone service provider is planning on continuing with the privacy surcharge, it is going to come out as an expensive service for the customers because the charges paid can reach a sum of $800 annually which is a ridiculously big amount.

In a Nutshell

It’s hard to believe that with all the chaos of accusations from Democrats, pending approval from Trump for the merger with Time Warner, and a lot of other things going on, AT&T has come up with the privacy charges announcement.

If the company sticks with its plan to charge extra, we will have to wait and see how it goes for AT&T. As the similar move had been criticized by customers before, the odds are less in favor of the famous phone service provider this time too.

So, let’s wait and see how it goes!

AT&T, Time Warner

AT&T – Time Warner Merger: Senators Put the Deal under Doubt

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AT&T Time Warner

AT&T, one of the leading prepaid phone service providers in United States, announced the acquisition of Time Warner in the month of October and since then, the matter has been in the news quite frequently.

Recently, the AT&T – Time Warner merger has made it to the hottest news again where the merger deal has been put under a cloud of doubt.

Democratic Senators Demanding To Block the Deal

In a letter to Jeff Sessions, the US Attorney General, a group of 11 Democratic senators have highlighted their objection to the acquisition proposal that AT&T made for Time Warner.

The major issues raised by the senators are that the acquisition or merger is going to harm the American customers by laying heavily on their pockets and affecting their access to entertainment programs. The issues include high prices, harm to net neutrality, decreased competition, lack of choice for users, content discrimination, and more.

According to the Democrats, the merger of Time Warner with the renowned mobile and home phone service provider can prove out to limit the competition among TV and mobile broadband providers. Also, the Democrats are concerned that the telecom behemoth and prepaid phone service provider AT&T might violate the principles of net neutrality by limiting the online and TV content of the competitors to its own network.

“AT&T-Time Warner could prioritize Time Warner content, including HBO, over HBO’s competitors in the premium channels market, such as Starz and Showtime. While premium channels are working to reach subscribers through over the top (OTT) services, many Americans still access premium channels by selecting them when they purchase or update their Pay-TV service, such as AT&T-owned DIRECTV. Because AT&T-Time Warner would have an incentive to drive subscribers to HBO, the combined company could choose to not market, market less vigorously, or otherwise harm its premium channel competitors during the DIRECTV sign-up process, which AT&T controls”, says the letter in this regard.

Why the Letter?

Democrats have drafted the letter and sent it to the Department of Justice because regulatory approval to the merger is still pending. Now, after bringing this letter into notice, the officials may or may not approve the merger of the huge prepaid phone service provider with Time Warner.

Thus, the acquisition of Time Warner by AT&T is still under a cloud of doubt.

It’s now in the hands of the Department of Justice. They can completely block the deal, can approve it, or approve it with terms and conditions. The giant mobile and home phone service provider will now have to wait and see what comes its way.

AT&T’s Response

For quite obvious reasons, AT&T denied everything that the letter had mentioned. In a statement, a spokesperson of the huge home phone service provider mentioned that the acquisition wouldn’t bring content discrimination but bring more choices for the consumers.

What’s next?

It’s to be seen whether the DOJ takes the decision in favor of AT&T or against it. With the letter being circulated to authorities, a great buzz has brought the merger under a dark cloud of doubt. With President Donald Trump against the deal, the odds are against AT&T. Still, let’s wait and see what’s next for the AT&T – Time Warner deal.

AT&T

Has Verizon Really Paid a High Price for Straight Path Acquisition?

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Verizon Wireless

There has been a tiff between two telecommunication giants – AT&T and Verizon, as to who was going to acquire the spectrum holder, Straight Path Communications!

And quite recently, the decision has been made by Straight Path and it was decided to be acquired by Verizon, one of the leading telecom companies, known for its quality prepaid phone service in the United States.

The deal has been sealed for an enterprise value of around $3.1 billion offered by Verizon, against its rival AT&T that made an offer of $1.6 billion, the previous month.

The acquisition has been made as an all-stock transaction by the renowned wireless and low income phone service provider. The buzz has spread within the telecommunication industry like wildfire as most experts consider the deal as a ‘huge sum being paid for a tiny spectrum coverage’.

So, has Verizon made an impulsive decision in buying Straight Path? We don’t think so! Let’s have a look, why:

The Acquisition

Straight Path Communications is a spectrum owner with US spectrum licenses for 39 GHz bands, counting to 735 and 133 licenses for the 28 GHz bands. Thus, the company has been named as one of the largest spectrum owners for high-frequency mmWave (millimeter-wave) spectrum.

This spectrum is seen as an extensive resource by the next generation 5G broadband service providers and with this realization, AT&T, a behemoth prepaid phone service provider, started the offer for the acquisition.

At the time of the offer, Straight Path’s stock price was $36 when AT&T offered to acquire the startup with an offer of $95.63 per share.

After AT&T, Verizon secretly sealed the deal through an offer for a whopping price of $184 per share.

With a bid of five times the stock price, the decision of acquisition by the mobile and low income phone service provider has been under a number of doubts.

How is Verizon Going to Benefit from the Deal?

We must not base our judgments on the high-priced bids being offered by Verizon. Straight Path is the owner of a huge amount of 28 GHz and 39 GHz spectrum throughout the country.

After adequate calculations, it has been noticed that the bid amount seemed minuscule in front of what is being paid to cover the potential customers through spectrum licenses used by Verizon for its 4G LTE services. Thus, when calculated from the service point of view of the huge prepaid phone service provider, the cost of spectrum turns out to be 1.7 cents for each person. Thus, the deal wasn’t much of a stretch for Verizon but it was a smart and intelligent decision.

In a Nutshell

Verizon is a renowned mobile, wireless, and low income phone service provider that has been facing tough competition from many other telecom companies emerging in recent times. With the idea of broadening its 5G broadband services, the telecom giant has acquired Straight Path Communications, a spectrum owner.

The acquisition amount might seem huge and reckless but when calculated closely, the deal is going to bring great profits to the prepaid phone service provider. With spectrum coverage throughout the country, Verizon is surely seeking growth with a winning strategy!

AT&T

AT&T Has Raised the 5G Bar with an Accelerated Timeline for Its 5G Services

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AT&T 5G Services

Recently, the famous telecommunication company, Verizon made the announcement regarding its 5G network trials being introduced in 11 US cities. The proclamation by this renowned mobile and residential phone service provider gave users the idea that the Fifth Generation (5G) of networking is going to hit the markets soon.

However, the 5G network was still not expected until the late 2020s but, AT&T made its recent 5G announcements and raised the bar of expectations high.

AT&T’s 5G Proclamation

The recent agreement by the 3rd Generation Partnership Project (3GPP) wireless standards body resulted in the acceleration in some of the 5G New Radio (NR) timeline elements. With this agreement, AT&T – the well-known mobile and prepaid local phone service provider – announced that they’ll launch their standards-based mobile 5G services soon.

And how is “soon” defined, you ask? Well, the good news is that this could be as early as late 2018! This expected time period is a year ahead of the timeframe anticipated for the implementation of 5G technology.

With the standards acceleration by 3GPP, AT&T and 47 other global mobile and low-income phone service operators have snapped into action to revise their 5G network timeline.

The Whole Matter

The accelerated schedule allows the 5G NR specifications to be completed Dec 2017. The schedule actually supports ‘non-standalone’ 5G standards.

Now, what’s the difference between non-standalone and standalone 5G?

The non-standalone 5G uses the LTE network for connecting to the 5G data. On the other hand, the standalone 5G network is a whole new network core that differs from LTE completely but still works along with it.

AT&T, the telecommunication giant, has been offering mobile and prepaid local phone service for years and is well renowned for its network. The telecom behemoth supports both the non-standalone and standalone 5G standards. Thus, with the fixation in the accelerated standards, AT&T can easily work up its ways.

The accelerated timeline for the 5G standards would require the mobile and residential phone service provider to introduce more hardware for both the kinds of 5G standards.

The capabilities of AT&T for delivering the 5G network has already been tested with 3GPP on how the users can start with their non-standard 5G network and then switch to the standard network afterward. This testing has been covered under the AT&T Network 3.0 Indigo platform.

When it comes to the 5G network trials, AT&T has stayed much ahead in the race as compared to the other prepaid phone service providers. In January 2017, the telecom giant joined hands with Ericson and Qualcomm Inc. for testing the 3GPP 5GNR network specification. The tests were to be carried for the second half of 2017.

With prototype devices by Qualcomm and the base station solution by Ericson, AT&T, and the two others had planned on deploying the 28GHZ and 39GHZ spectrum bands for boosting the network availability for AT&T prepaid phone service users.

Recently, AT&T has acquired FiberTower to make its 5G game strong by utilizing the millimeter wave (mmWave) spectrum assets of said company.

Final Thoughts

A number of renowned telecom companies providing mobile and residential phone service for years have been engaged in creating opportunities to deliver the 5G network by the end of 2020.

With the revised standards by 3GPP, it is expected that the specifications will be met by the end of June 2018 and as AT&T is already prepared well in advance, it might be able to deliver its 5G network services by the end of 2018!

So, we can just wait and see how the 5G revolution changes our lives with improved telecommunication and internet services.

AT&T

AT&T’s New Unlimited Plan: A Turn Down for Prepaid Users

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AT&T New Unlimited Plan

The telecommunication giant AT&T has been constantly making it to the news headlines with it’s announcements. And again, this huge mobile and residential phone service provider is in the news, but for different reasons.

The subject of this news is the very new unlimited plan recently introduced by the company, for its GoPhone customers. Let’s have a closer look at the matter!

The ‘Truly Unlimited’ Plan

“We’re excited to offer a truly unlimited plan for our AT&T GoPhone customers,” said Bob Bickerstaff the vice president of AT&T wireless voice and prepaid products.

“AT&T GoPhone customers now have even more flexibility to pick the plan that fits their needs as well as the perfect device from a selection of premium smartphones they really want”, he added.

The so-called ‘truly unlimited’ plan introduced by AT&T is specially introduced for the company’s GoPhone customers.

GoPhone is a contract-free postpaid and prepaid phone service provided by AT&T.

The plan will set you back $65 per month and if you sign up using AutoPay, the plan can be purchased for $60 per month – a $5 savings.

With this plan, GoPhone prepaid customers get unlimited calls, texting, and data. The maximum speed of the data is limited to just 3 Mbps, which is where the major problem starts.

The Problem

If you’re using the GoPhone prepaid phone service provided by AT&T and are planning on buying this new unlimited plan, think twice!

After buying the plan, all that you’ll receive is a snail-paced internet with a bungled video quality. Along with the data speed being limited to 3 Mbps, the GoPhone prepaid users have also been prohibited from using the mobile hotspot.

When it comes to watching videos, the data speed slows down even beyond the limit of 3 Mbps and the download speed is capped out to 1.5 Mbps. The plan also restricts the resolution of videos to just 480p, which is a great turn down for the users.

AT&T customers normally enjoy a 4G data speed of up to 13 Mbps which makes the current plan’s speed limitations quite contradictory.

AT&T has been excelling in the telecommunications industry for years, with its mobile and residential phone service. However, with the recent launch of this unlimited plan, the phone service provider has been surrounded by a number of questions and doubts by its GoPhone users.

The AT&T GoPhone customers can opt for another data plan that offers 6GB data per month at $40. However, the customers that are not using AutoPay will have to pay $45/month for the same plan.

This plan doesn’t restrict the data speed and the users can have easy access to HD videos with their prepaid phone service. The data speed is reduced to 128 kbps post the 6GB usage and there is no overage fee, post usage.

Final Thoughts

A similar unlimited plan at $90/month is available for the postpaid GoPhone customers. This plan comes without any speed limitations of the data and allows around 10 GB of high-speed hotspot and tethering. Thus, allowing the postpaid users to access high-speed internet without many limitations.

With the latest unlimited plan for prepaid and a better plan for the postpaid users, AT&T has somewhere shown an intention of inducing its customers to switch to the postpaid services.

Though the repute of the phone service provider has wavered a little with the limitations of the ‘truly unlimited’ plan, customers still have a number of other options to choose from.

AT&T

AT&T’s Share in Modernizing Raleigh-Wake: Advanced 9-1-1 Services

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AT&T Advance 911 Service

To provide better security and emergency services to its citizens, the Raleigh-Wake county of North Carolina has opted for the AT&T ESInet™.

Known for its spotless mobile and residential phone service in telecommunications, there is no denying the fact that AT&T’s network is highly regarded throughout the nation. This is the reason why Raleigh-Wake County has chosen AT&T for better security services with a cutting-edge 9-1-1 support network.

With it’s strong network and the best-in-industry mobile and prepaid home phone service, AT&T has been considered as the best option to support Raleigh-Wake for better security and the safety of its communities and populace.

More about the Service

The service from AT&T ESInet™ provides a flawless solution to Raleigh-Wake, ensuring an IP-based 9-1-1 call routing service. The calls are directed to 9-1-1 agencies allowing the people to have a reliable and enhanced emergency response.

The service is also directed towards an improved disaster recovery.

Utilizing the vast mobile and residential phone service network of AT&T, the calls will be routed more sophisticatedly, based on the geographic location of the caller. Advanced communication measures like text messages to 9-1-1 can also be managed and routed by the Public Safety Answering Points (PSAPs) through this advanced service.

The service has been implemented keeping in mind the increased usage of mobile devices as it has been seen that more than 70% of the 9-1-1 emergency calls are done through mobile phones.

This is the reason why the service is adaptable both for the prepaid home phone service and mobile services. In the future, the service will let the PSAPs manage picture or video messages sent to 9-1-1.

Words from the Authorities

RALIEGH-WAKE:

“Raleigh-Wake continues to grow quickly, and we need to be prepared to meet the public safety needs of our increasing population. We see this as an investment in the safety and future of our county,” said Dominick Nutter, the director of the Raleigh-Wake Emergency Communications Center.

“Upgrading our technology with AT&T ESInet was an obvious choice. It’ll increase our ability to handle unexpected call volumes, expand how people interact with 9-1-1 and enable us to quickly and correctly route calls and text messages to the right 9-1-1 agency the first time.” Dominick added.

AT&T:

“We’ve long supported Raleigh-Wake’s public safety needs. And we applaud their decision to future-proof their 9-1-1 infrastructure,” said Jim Bugel, the vice president of AT&T Public Safety Solutions.

“AT&T ESInet will provide Raleigh-Wake’s emergency services with an advanced network to better meet the needs of their citizens, first responders and 9-1-1 call takers today and tomorrow”, he added.

The Benefits

  • Utilizing the nationwide safe and highly-secure mobile and residential phone service network of AT&T
  • Advanced and geographically diverse network of calling services
  • Strong maintenance of services even in case of any disaster
  • Fast service, allows the caller to get the access to a 9-1-1 agency in no time
  • Automated routing of calls to nearby PSAPs in case of overflowing calls

The Bottom Line

With a huge growth in mobile, TV, IoT, and prepaid home phone service, AT&T is hitting it quite big with its robust network. The collaboration of AT&T with the emergency and safety authorities of Raleigh-Wake increases its quotient of social services. This will help Raleigh-Wake develop a more secure emergency network for the people living within the county.

AT&T

AT&T International Pass Limits Phone Costs Abroad to $10 Per Day

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AT&T International Pass

Now, vacations can go just a little less expensive for AT&T customers. They will certainly not get any major shock after returning to home and seeing their wireless bill. AT&T, a renowned phone service provider, has offered great relaxation to the pockets of their appreciated customers. Take advantage of this benefit, and save your hard earned money.  

A little information about AT&T

AT&T Inc. is an American multinational telecommunications corporation, headquartered at Whitacre Tower in downtown Dallas, Texas. It is the third-largest corporation in Texas. AT&T is the second largest mobile telephone services provider and the topmost fixed telephone services provider in US. You can even receive the benefits of its broadband subscription television services through DirecTV.

Several statistics highlight that, as of 2017, AT&T is also the 18th-largest mobile telecom operator globally, with 135 million mobile customers. AT&T Inc. started working as Southwestern Bell Corporation, which is one of seven Regional Bell Operating Companies (RBOCs) formed in 1983 in the divestiture of the American Telephone and Telegraph Company. Southwestern Bell changed its name to SBC Communications Inc. in 1995.

AT&T International pass limits phone costs abroad to $10 per day

AT&T International Day Pass allows users to talk, text, and surf the Web in over 100 countries. But, instead of being charged per minute, message, or megabyte, customers pay just $10 per day per device for each complete 24 hours.

David Christopher’s AT&T chief marketing officer statement

“Traveling has its own challenges,” David Christopher, AT&T, the mobile and home telephone service provider’s chief marketing officer, said in a statement. “It’s great being able to use the domestic plan you’re familiar with while abroad.” It implies more opportunities to upload filtered photos, translate street signs, video chat, and navigate transportation networks, and less time stressing over exactly what additional charges you are going to be paying.

You just have to add your smartphone or tablet to the plan to access data in diverse destinations, including Europe, Asia, and the Caribbean. Also, get unlimited calls to the USA, and other International Day Pass countries. Plus, you can enjoy the benefits of unlimited texts anywhere in the world without paying anything extra. AT&T is a well-known phone service provider, having a myriad of attractive phone plans.  

Christopher’s viewpoint

“AT&T International Day Pass simplifies travelers’ lives so they can enjoy more of their favorite mobile apps when on-the-go overseas,” Christopher said. “This helps with booking lodging, catching a ride … using social media, and more.”

So, if you are planning a trans-Atlantic trip, choose an unlocked smartphone or international SIM card instead. AT&T, mobile and home telephone service provider, reserves the right to withdraw access to the new feature if voice, text, or data usage reaches above 50 percent of the consumers’ total use for two consecutive months. The carrier in August extended its worldwide roaming coverage to take in Cuba, becoming the last main US wireless provider to deliver service on the island. AT&T has maintained a good reputation by delivering the best services to its customers.

AT&T

AT&T Increases Phone Activation and Upgrade Fee from $20 to $25

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AT&T Activation Fee

Changes in the current wireless market don’t seem to be favoring local phone service subscribers in United States. All phone service providers seem to be interested in generating financial profit by digging deeper into the pocket of their customers.

That’s true!

First, Verizon Wireless increased their upgrade fee from $20 to $30. Now AT&T has also followed in the footprints of Verizon Wireless. Last week, AT&T discontinued discounts on its lifeline phone services. Now the local phone service provider has increased its activation and upgrade fee from $20 to $25 for non-contract phones.

This is not the first time this has happened:

AT&T, one of the leading local phone service providers in US, has increased activation and upgrade fees several times. Earlier it was around $15. The company increased it from $15 to $20 in 2016 during the month of April. Now it has been increased again to $25, says, PhoneScoop.

According to AT&T:

This recently increased activation fee to $25 will be applicable to new activation or upgrades when consumers purchase devices on agreements for installments.

Moreover, any new customer bringing their phones to the carrier will be charged the fee of $25. They will charge this fee of $25 when they bring their phones for activating a new line of service. The company will not charge the fee to any customer applying for upgrading phones on existing lines, says AT&T, the local phone service provider in the US.

In Addition to This:

The company is making some more changes. These changes are going to be minor. Furthermore, these changes will be related to activation and upgrade fees. On the other hand, AT&T still charges $45 for activation and upgrade. This fee is charged on the contract of two years. However, these contracts are not available for every device.

AT&T’s Reason behind Increasing Activation and Upgrade Fee from $20 to $25:

AT&T has its own reason to increase the activation and upgrade fee from $20 to $25. The company had almost secured 1.5 million subscribers during the third quarter of 2016. But the company faced the loss of nearly 268,000 postpaid subscribers in no time. Most of the subscribers that bid adieu to the company were using affordable phones. The company successfully posted a US wireless operating margin of nearly 29.6 percent. Even then the company faced significant loss of revenue year-after-year.  This mainly happened due to a constantly decreasing subscriber count and equipment revenue. Therefore, the company is planning to charge a little more to every customer in the form of activation and upgrade fees for recovery of lost revenue.

Possible Effects:

The company seems to be in a hurry to recover its losses in revenue. Therefore, it might be a little difficult for some low income phone service users of AT&T to digest this increase in activation and upgrade fee from $20 to $25. It is too early to predict the possible impact of this decision on AT&T’s low income phone service users and also on the company’s revenue and growth in the long run.