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AT&T (T) to Raise Unlimited Data Plans' Prices Again in '17
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According to a recent report by FierceWireless, U.S. telecom and pay-TV behemoth AT&T Inc. (T - Free Report) has announced a rate hike of $5 per month for users who still avail its old unlimited data plan. This hike brings the monthly price of the plan to $40, effective Mar 2017.
The latest hike can be seen as a follow-up to the telco’s price hike plans last year. On Nov 30, 2015, AT&T announced a similar price hike for its legacy unlimited data plan by $5 per month, pushing up the total to $35, effective Feb 2016.
AT&T has mentioned that its Mobile Share Advantage plans and AT&T Unlimited Plan provide several benefits that its legacy unlimited plan lack. So, customers have been asked to use the legacy unlimited data plan to keep enjoying the rate of $35 per month until the hike is brought into effect.
AT&T’s unlimited data plan was originally a tool to encourage people to get an iPhone during the early days of the modern smartphone era. But AT&T stopped offering its unlimited data service to new customers in 2010, replacing it with a layered pricing model. The move was taken as a result of the operator’s failure to meet increasing demand for data among the carrier's growing iPhone customer base in the United States.
However, on Jan 11, 2016, AT&T restored its unlimited data service plan only for its DirecTV or U-Verse TV customers. These customers were offered unlimited talking, texting and data for $100 per month for the first line and $40 per month for each additional line, and a fourth line was offered free of cost.
AT&T’s current data plans start at $80 for 10GB data that can be shared across multiple devices.
Price Hike Issues
AT&T isn’t the only carrier forging ahead with such price hike plans, in order to get away with its older plans in a slow motion. On Jan 9, Verizon Communications Inc. (VZ - Free Report) confirmed that Verizon Wireless customers with unlimited data plans who use more than 200GB per month will have to either shift to limited plans from next month or lose their connection.
However, AT&T’s increase is minor when compared to Verizon’s move, irrespective of the fact that both wireless carriers share the same motive of controlling subscribers and dumping their older plans and services.
When AT&T raised the price of the unlimited plan in 2016 it clearly stated that anyone not satisfied with the increase are free to switch to any other plan offered during the said time or cancel their contract without incurring any prior termination fee.
But to be more specific, price hikes aren’t the only steps taken by AT&T to keep its unlimited plan subscriptions under control. In Sep 2015, AT&T announced that it would throttle unlimited users after they used more than 22GB in a given month.
To give more information on AT&T’s performance, let’s take a sneak peek into its stock price performance in the past one year. Shares of AT&T added 19.62%, underperforming the Zacks categorized Wireless National industry’s gain of 24.17% over the same time period.
On Dec 13, 2016, AT&T had announced a rate hike for a number of its programming packages like U-verse IPTV, DirecTV and Phone effective Jan 22, 2017. The higher cost of programming has compelled the company to raise its charges.
On Dec 12, 2016, Comcast Corp. (CMCSA - Free Report) , a leading cable multi-service operator (MSO) in the U.S., also announced increases in the monthly price of its TV, Internet and video services, by average 3.8% nationally. The effective date of the fee increases will vary from one market to another, staring Jan 1, 2017.
An ‘Exceptional’ Reverse Move
As a reverse action to such moves, U.S. national wireless carrier T-Mobile US Inc. (TMUS - Free Report) announced its plans to eradicate all additional fees and taxes on its unlimited data plans at a press event held in Las Vegas on Jan 5. This decision by T-Mobile US to remove additional fees and taxes is an exceptional step. It seems that T-Mobile US is consumer-friendly and thinks about their benefits and facilities.
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AT&T (T) to Raise Unlimited Data Plans' Prices Again in '17
According to a recent report by FierceWireless, U.S. telecom and pay-TV behemoth AT&T Inc. (T - Free Report) has announced a rate hike of $5 per month for users who still avail its old unlimited data plan. This hike brings the monthly price of the plan to $40, effective Mar 2017.
The latest hike can be seen as a follow-up to the telco’s price hike plans last year. On Nov 30, 2015, AT&T announced a similar price hike for its legacy unlimited data plan by $5 per month, pushing up the total to $35, effective Feb 2016.
AT&T has mentioned that its Mobile Share Advantage plans and AT&T Unlimited Plan provide several benefits that its legacy unlimited plan lack. So, customers have been asked to use the legacy unlimited data plan to keep enjoying the rate of $35 per month until the hike is brought into effect.
AT&T’s unlimited data plan was originally a tool to encourage people to get an iPhone during the early days of the modern smartphone era. But AT&T stopped offering its unlimited data service to new customers in 2010, replacing it with a layered pricing model. The move was taken as a result of the operator’s failure to meet increasing demand for data among the carrier's growing iPhone customer base in the United States.
However, on Jan 11, 2016, AT&T restored its unlimited data service plan only for its DirecTV or U-Verse TV customers. These customers were offered unlimited talking, texting and data for $100 per month for the first line and $40 per month for each additional line, and a fourth line was offered free of cost.
AT&T’s current data plans start at $80 for 10GB data that can be shared across multiple devices.
Price Hike Issues
AT&T isn’t the only carrier forging ahead with such price hike plans, in order to get away with its older plans in a slow motion. On Jan 9, Verizon Communications Inc. (VZ - Free Report) confirmed that Verizon Wireless customers with unlimited data plans who use more than 200GB per month will have to either shift to limited plans from next month or lose their connection.
However, AT&T’s increase is minor when compared to Verizon’s move, irrespective of the fact that both wireless carriers share the same motive of controlling subscribers and dumping their older plans and services.
When AT&T raised the price of the unlimited plan in 2016 it clearly stated that anyone not satisfied with the increase are free to switch to any other plan offered during the said time or cancel their contract without incurring any prior termination fee.
But to be more specific, price hikes aren’t the only steps taken by AT&T to keep its unlimited plan subscriptions under control. In Sep 2015, AT&T announced that it would throttle unlimited users after they used more than 22GB in a given month.
To give more information on AT&T’s performance, let’s take a sneak peek into its stock price performance in the past one year. Shares of AT&T added 19.62%, underperforming the Zacks categorized Wireless National industry’s gain of 24.17% over the same time period.
Hence, AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Price Hikes in ’16
On Dec 13, 2016, AT&T had announced a rate hike for a number of its programming packages like U-verse IPTV, DirecTV and Phone effective Jan 22, 2017. The higher cost of programming has compelled the company to raise its charges.
On Dec 12, 2016, Comcast Corp. (CMCSA - Free Report) , a leading cable multi-service operator (MSO) in the U.S., also announced increases in the monthly price of its TV, Internet and video services, by average 3.8% nationally. The effective date of the fee increases will vary from one market to another, staring Jan 1, 2017.
An ‘Exceptional’ Reverse Move
As a reverse action to such moves, U.S. national wireless carrier T-Mobile US Inc. (TMUS - Free Report) announced its plans to eradicate all additional fees and taxes on its unlimited data plans at a press event held in Las Vegas on Jan 5. This decision by T-Mobile US to remove additional fees and taxes is an exceptional step. It seems that T-Mobile US is consumer-friendly and thinks about their benefits and facilities.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>