Back to top

Analyst Blog

AT&T Inc.(T - Analyst Report) – the second-largest telecom carrier in the U.S. after Verizon Communication Inc. (VZ - Analyst Report), plans to expand in the prepaid mobile market by introducing low-cost service plans through its new wireless subsidiary, Aio Wireless.

Aio Wireless will be providing unlimited talk, text and Internet service plans without any agreement throughout the country contract. The new plan will be starting from as low as $35 to $70 per month.

Initially, Aio will offer its prepaid service from its newly opened stores across three most popular cities, namely, Houston, Orlando and Tampa. These stores are completely separated from the AT&T owned retail outlets.

In the recently concluded quarter, AT&T Inc. lost 184,000 prepaid customers mainly due to  a lack of popularity of its prepaid GoPhone service. Moreover, sale of contract less iPhones along with attractive UnCarrier plan (starting at $50 per month with unlimited calls and 500MB free data) by the fourth-largest carrier in the country – T-Mobile US, Inc. (TMUS - Snapshot Report) – will further increase subscriber loss in the forthcoming quarters.

Even Leap Wireless International Inc. – one of the leading prepaid carriers in the U.S. – is selling no-contract iPhones to its customers along with attractive $50 Android Muve music plan.

So, to consolidate its position in the prepaid market which mainly comprise price sensitive customers and to counter competition from other prepaid service plans, the company will rollout such attractive plans.

Currently, AT&T Inc. has a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.71 +6.73%
RF MICRO DE… RFMD 12.47 +5.99%
VASCO DATA… VDSI 14.79 +4.82%
CHYRONHEGO… CHYR 2.85 +4.78%
RTI SURGICA… RTIX 5.39 +2.86%