) - the second-largest telecom carrier in the U.S. after
Verizon Communication Inc. (
), plans to expand in the prepaid mobile market by introducing
low-cost service plans through its new wireless subsidiary, Aio
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.
) - will further increase subscriber loss in the forthcoming
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).
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