AT&T using bundles in “aggressive” wireless push - Mobile World Live

AT&T using bundles in “aggressive” wireless push

01 DEC 2017

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”.

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Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

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