AT&T to Try to Un-Carrier T-Mobile With Switching Credit
T-Mobile stunned the wireless industry in 2013 with its un-carrier initiative, which included contract-free plans, non-subsidized phones in exchange for cheaper monthly rate plans, and affordable international roaming. It seems that T-Mobile’s progress may have struck a nerve with larger rival AT&T as the latter is rumored to offer a $200 credit for T-Mobile customers to switch to the Rethink Possible network.
According to GeekWire, the switching credit is only applicable to T-Mobile customers who are looking to switch over to AT&T. AT&T isn’t offering the promotion to switchers from other carriers, including those of Verizon Wireless and Sprint.
If this intelligence is true, it would be a bit surprising given that AT&T and Verizon Wireless, the nation’s two largest networks, usually offers similar promotions to each other to compete but largely ignore smaller carriers like Sprint and T-Mobile. In essence, AT&T and Verizon typically don’t match offers made by Sprint or T-Mobile and usually only react to each other in the marketplace.
This would also be a preemptive move by AT&T. Over the New Year holiday, T-Mobile USA CEO John Legere, known for being outspoken, listed as one of his resolutions, “to give AT&T a break, or not.” The carrier is teasing a potential big announcement for CES, which could include offering a steep credit to customers of rival carriers to switch to its magenta-branded network.
AT&T has not made any formal announcements regarding this switching credit. It will be interesting to see how things pan out in the wireless industry in 2014 with T-Mobile’s aggressive moves.