AT&T to Bring Back Unlimited Wireless Data Plans
January 11 2016 - 12:00PM
Dow Jones News
AT&T Inc. is bringing back unlimited wireless data plans, a
reversal after more than five years of moving customers away from
such plans onto those that charge for data use.
The new plans are only available to customers who subscribe to
its recently acquired satellite television service, DirecTV, or its
older U-verse TV service. They come at a competitive time in the
industry that has carriers looking for new ways to attract
customers, and retain their existing ones, without simply cutting
prices.
In 2010, AT&T was the first major U.S. carrier to stop
offering unlimited data to new customers. Rival Verizon
Communications Inc. followed the next year, while smaller national
rivals, T-Mobile US Inc. and Sprint Corp., continue to offer such
plans.
AT&T and Verizon have long argued that the surging growth in
data traffic required expensive network upgrades, and unlimited
plans prevented carriers from collecting more money as usage
rose.
In November, T-Mobile began offering a service that doesn't
charge customers for data used to stream video from a select group
of providers such as Netflix, Hulu and HBO. The video is streamed
at lower quality in exchange for waiving related data fees.
AT&T said it is able to offer the plan because it has made
significant network investment. A spokeswoman said the move wasn't
in response to T-Mobile's recent free streaming video offering.
The new AT&T plan includes unlimited data and unlimited talk
and text for $100 a month and additional lines are $40 a month with
the fourth line being free. The cost of a smartphone is separate
from the service plans.
In the AT&T plan, the carrier said it may slow data speeds
during periods of network congestion after a customer uses 22
gigabytes in a month.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
January 11, 2016 11:45 ET (16:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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