Scalper1 News
Wireless churn — the number of subscribers that disconnect service — marked a Q2 bright spot for AT&T (T), which nevertheless missed on EPS and revenue. With Apple’s (AAPL) launch of the iPhone 6 expected as early as September, a big question is how well-positioned AT&T will be as subscribers upgrade to Apple’s new device. In response to aggressive marketing by T-Mobile US (TMUS), AT&T has promoted wireless plans that make it easier for customers to upgrade to new smartphones. With installment-payment plans, AT&T has reduced retail subsidies on mobile phones, improving wireless profit margins. The new installment-payment plans, however, usually come with discounts on data services, lowering revenue. And AT&T also has offered “Mobile Share Value” discounts to existing customers as a retention tool. That helped AT&T notch record-low customer churn, or disconnects, in Q2. AT&T now has 55 million smartphone subscribers, with 24 million of those — 44% of its… Scalper1 News
Scalper1 News