AT&T Is Weathering Sprint and T-Mobile's Ad Assaults


AT&T posted a surprise wireless subscriber gain in the second quarter, showing it can fend for itself in a cutthroat price war.

Second-quarter earnings topped estimates, and wireless customers rose by 127,000, compared with analysts’ average projection for a loss of 22,713. An offer for unlimited wireless data, bundled with discounted streaming-TV service, helping AT&T bide its time while awaiting regulatory approval to transform into a media powerhouse through the $85.4 billion purchase of Time Warner.

Sprint is offering consumers deep discounts, including a year’s worth of free service, and T-Mobile U.S. continues to hammer AT&T with aggressive advertising. But AT&T is managing to weather the fierce competitive environment for now by bundling services instead of cutting prices, running its network more efficiently and adding wireless subscribers in Mexico, its newest market.

AT&T posted a surprise wireless subscriber gain in the second quarter, showing it can fend for itself in a cutthroat price war.

Second-quarter earnings topped estimates, and wireless customers rose by 127,000, compared with analysts’ average projection for a loss of 22,713. An offer for unlimited wireless data, bundled with discounted streaming-TV service, helping AT&T bide its time while awaiting regulatory approval to transform into a media powerhouse through the $85.4 billion purchase of Time Warner.

Sprint is offering consumers deep discounts, including a year’s worth of free service, and T-Mobile U.S. continues to hammer AT&T with aggressive advertising. But AT&T is managing to weather the fierce competitive environment for now by bundling services instead of cutting prices, running its network more efficiently and adding wireless subscribers in Mexico, its newest market.

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Source:: Advertising Age Digital

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