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AT&T (T) Joins Unlimited Data Plan Battle, Offers $100 Plan

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According to a recent FierceTelecom report, U.S. telecom behemoth AT&T Inc. (T - Free Report) has also come up with its unlimited data plan. This is likely to pose tough competition to Verizon Communications Inc.’s (VZ - Free Report) recently launched unlimited 4G LTE data plan, called Verizon Unlimited. Verizon's unlimited plan is reportedly starting at $80 per month for unlimited data, talk and text for the first line, with a second line for $60 a month.

To this end, AT&T's unlimited plan is reportedly starting at $100 per month for unlimited data, talk and text for a single line. A family plan for four subscribers will cost $40 per line, or $180 monthly. Previously, this unlimited plan was available only for only DirecTV and U-Verse subscribers. But now, the plan will be made available to all consumer and business postpaid AT&T wireless customers along with other customers.

Reports also state that AT&T’s plan also allows unlimited calling from the U.S. to Canada and Mexico as well as unlimited texting to over 120 countries. Moreover, the inclusion of the ‘Roam North America’ feature will enable customers on this plan to talk, text and use data in Canada and Mexico without paying any extra roaming charges.

However, the plan doesn't include hotspot data. Additional charges will be required to pay to tether one’s phone connection to another device. Also, download speeds may slow down after the consumption of 22 GB data in a billing period during times of high network congestion. Video may get downgraded if users do not turn off the ‘Stream Saver’ feature.

Winding Up

Unlimited data plans or unlimited offerings are quite common in the wireless industry. U.S. wireless carriers opt for unlimited offerings as a weapon to lure customers from their rivals. Sprint Corp. (S - Free Report) has also joined the unlimited data plan frenzy with its latest plan starting at $50 per month for a single line. T-Mobile US’ (TMUS - Free Report) unlimited plan starts at $70 per month for a single line, and two lines are available for $100 a month. These unlimited offerings, however, come with attractive promotional plans, advertisements and lucrative discounts, which will lead to further cash burn and losses for the company.

We appreciate such a move on the part of AT&T which seems more consumer friendly. We further expect the company to continueto provide better service to its customers with varied choices and conveniences and more value. Moreover, AT&T’s latest 5G plans coupled with the FiberTower buyout bode well.

Over the past three months, AT&T returned 10.24%, while the Zacks-categorized Wireless National industry gained 7.23%.

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.

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