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AT&T to Sweeten U-Verse Internet Plans with Additional Data

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AT&T Inc.T announced that it will update its U-Verse home Internet plans in May this year to enhance the Internet experience for its home users. The company plans to introduce new and varied plans with higher data caps as well as unlimited data plans. In December last year, AT&T had hiked the prices of its U-Verse voice and video services.

The Plans

Customers having only U-Verse home Internet will be able to enjoy unlimited data by paying an additional $30 each month. Meanwhile, customers availing U-Verse TV or DIRECTV service along with the U-Verse home Internet service will be able to enjoy the unlimited data plan at no extra cost. Also, data caps will be increased for all other home Internet customers, depending on their current plans. The extension of the data caps however does not apply to AT&T's DSL customers.

Our Take

Fast Internet speeds and unrestricted data allowance are crucial for customers in the digital age. Apart from fast hassle-free browsing, customers demand higher bandwidth and data for to fulfill their gaming and video streaming needs. Also, as Internet TV gains popularity among the millennial population, the crucial decision of selection of an Internet Service Provider depends largely upon the speeds and data caps offered by them.

Competition in the broadband Internet market is rife with rivals like Comcast Corp. CMCSA , CenturyLink Inc. CTL and Verizon Communications Inc. VZ fighting it out to gain subscribers in a saturated market. We believe AT&T has identified the key to retaining and increasing its broadband Internet subscriber base. However, with other rivals constantly improving and upgrading their technologies, competitive pressure is here to stay.

AT&T currently has a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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