The rivalry between AT&T and T-Mobile is heating up. Just this weekend, AT&T has announced a tempting offer to customers of T-Mobile. The company is offering an instant $200 credit to each T-Mobile subscriber who would switch to its service. It also offers a handset trade-in deal that could possibly be worth up to $250.
Thus, AT&T’s offer stands at about $450 per T-Mobile customer who would ditch their current network to transfer to AT&T. And that offer began last January 3. The company reminded that the offer would be up for a limited time frame.
AT&T launched this unique promotion in retaliation to T-Mobile’s aggressive campaigns in the past months that particularly targeted AT&T subscribers. The major wireless network is also pre-empting an anticipated new competitive offer that is set to be launched by the smaller rival sometime next week.
Most market observers were surprised by the offer. They think that the per-line credit to be provided would be hefty enough. The added credit from the phone trade-in could be irresistible for T-Mobile subscribers. But again, many analysts think T-Mobile would not easily let the rival beat it.
AT&T vs. T-Mobile
Some people are wondering why the competition is more intensified between AT&T, the No. 2 mobile service provider in the US, and T-Mobile, the No. 4 mobile service firm. For many months now, T-Mobile has been criticizing its bigger rivals for their limited services. At the same time, the company builds up itself through marketing its own services as the cheaper, more flexible, and more consumer-friendly alternative.
In effect, AT&T is logically the most vulnerable to the aggressive marketing campaign of T-Mobile. That is because the two companies share the same network technology. Thus, it could be easier for their consumers to make the big switch.
But some analysts believe that it may take more effort for T-Mobile to finally win most of AT&T’s customers. They assert that T-Mobile should first be able to lure families as most of the rival’s subscribers are attached to existing family plans.
T-Mobile could be well aware of it. That could be the reason behind chief executive John Legere’s New Year’s Day tweet, which revealed that the company aims to poach the competitor’s family plan customers this year. Thus, T-Mobile is now expected to launch an aggressive offer to target families next week.
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