) will offer new no contract wireless plans for home connections
from Mar 22 onward. Under the new plans, customers can combine
their existing home phone and number with AT&T's wireless
network instead of fixed line connections.
AT&T's wireless home plans benefit customers by offering
nationwide mobility with affordable prepaid pricing. We believe
AT&T's strategic move to bring conventional landlines users
under wireless services bodes well for its revenue accretion from
the otherwise rapidly extinguishing fixed line markets.
The new prepaid wireless service for homes comes with a variety
of plans. This includes an unlimited domestic calling plan for
$20.00 per month, $1,000 minutes of international long-distance
calling to wireless and fixed lines for $15.00 and a one-time
cost for Wireless Home Phone device for $99.99.
The company believes that the broad selection of home plans will
not only provide affordability for customers but also enhance
customers experience by combining AT&T's wireless network
with the convenience of home phone service.
AT&T the largest wireless service provider followed by
Verizon Communications Inc.
), is aggressively following various promotional strategies with
new product launches. This week the company also announced
the addition of Microsoft Lync, an enterprise software by
), to its Unified Communications (UC) portfolio of services, to
attract enterprise market. In January this year, the
company also entered into a cloud-based video conferencing
service agreement with
We believe these initiatives coupled with AT&T's networking
infrastructure that combines Long Term Evolution (LTE) and
High-Speed Packet Access Plus (HSPA+) technologies would support
significant market penetration in the wireless space
However, the company suffers through constant access line losses,
competitive threats, heavy iPhone subsidies and federal
regulations that could hold back its prospects.
AT&T has a Zacks Rank #3, implying a Hold rating.
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