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AT&T Follows T-Mobile US, Unveils Offers to Thank Customers

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AT&T Inc. (T - Free Report) announced its plan, ‘AT&T THANKS’, to reward customers. The move came on the heels of its rival, T-Mobile US Inc.’s (TMUS - Free Report) similar but far more generous ‘Get Thanked’ offering. As part of the plan, AT&T will be giving out movie tickets as freebies every week. Additionally, the company has joined hands with Live Nation Entertainment, Inc. (LYV - Free Report) to gain access to tickets to select concerts before they are made available to the general public.

The Details

As per AT&T’s ‘Ticket Twosdays’ plan, wireless postpaid customers will be given a free ticket if they purchase one on Tuesdays at their full price. The telecom giant has teamed up with AMC Entertainment Holdings, Inc. (AMC - Free Report) and Regal Entertainment Group for this offer. However, AT&T has not disclosed the total amount of tickets that will be made available, instead saying that they will be handed out to customers until supplies last each week.

T-Mobile’s ‘Get Thanked’

AT&T has basically followed T-Mobile US’s suit. T-Mobile recently launched the ‘Get Thanked’ program, under which it gives out free Domino’s pizzas, Wendy’s ice-creams, movie rentals and other freebies through its T-Mobile Tuesdays app. Additionally, the company introduced the unique ‘Stock Up’ plan, under which the wireless carrier would grant a stock to each of its customers. However, the implementation of the program was impeded by overloading servers and Domino’s Pizza opting out due to overwhelming demand.

The Bottom Line

Competition in the U.S. telecom space has been intensifying of late. With relatively smaller carriers like T-Mobile US and Sprint Corp. luring customers through attractive offers like freebies, behemoths of the industry like Verizon Communications Inc. and AT&T have been facing challenging conditions. Thus, to tackle competitive threats, it was inevitable that AT&T would step in with a similar measure. Nevertheless, we are concerned about the impact of the same on the company’s margins, going ahead.

AT&T presently has a Zacks Rank #3 (Hold).

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