AT&T vies against T-Mobile US with more frequent device upgrades and installment plans
On Tuesday, AT&T Inc said it planned to allow its clients to make annual device upgrades. It would also permit them to pay through installment plans per month. The company's new undertaking would be done as it vied against the same option from competitor T-Mobile US. AT&T was the second largest mobile carrier in the US while T-Mobile was the fourth.
On July 26, the start of AT&T's new venture was scheduled to take place. The plan was in comparison with the company's old requirements to stick with a similar gadget for two years in exchange of a discount on the purchase.
The operators were contending to get each other's customers. The generation today, when almost all people owned smartphones, would directly benefit the two companies. In 2011, they tried but failed to team up due to unsettled terms.
AT&T stated that under its new venture which was called AT&T Next, it would not charge an upfront gadget fee. However, it would charge its customers US$15 to US$50 every month depending on the type of gadget.
T-Mobile, on the other hand, charged an upfront payment for a gadget on top of US$10 each month payment. This would enable the customers to enlist for the Jump upgrade choice. Its instalment packages were up to US$20 each month including service fees per month.
AT&T expected to gain more revenue through the plan.