Jefferies analysts said AT&T is leaning into its bundling strategy as part of a renewed push to gain wireless share from competitors.
In a research note, Jefferies analysts indicated AT&T executives are pushing for a “more aggressive” posture when it comes to taking share from wireless rivals, though the move won’t necessarily translate into a price drop for consumers. Jefferies noted the operator will instead leverage wireless as a critical component in its bundling strategy, using customer visits for upgrades and accessory purchases as cross-selling opportunities.
AT&T’s focus will be on providing added value through video and broadband services competitors can’t offer, Jefferies analysts said.
“The company is taking a hard look at where competitors are over-indexed, including specific geographies and demographics while leveraging consumer data to better target customers,” the analysts wrote.
In mid-November, AT&T CFO John Stephens talked up the benefits of bundling, heralding the strategy as a boon for customer retention.
Stephens reported AT&T had grown the number of customers using both AT&T wireless and DirecTV service to 20 million. He indicated “it’s obvious” bundling wireless and video is providing a “great value” and is leading customers to “stay with us in greater numbers”.