AT&T launched three new 5G mobile plans, replacing its four existing offerings and emphasizing value on the entry- and mid-
level options while providing more bells and whistles with the top plan.
Impact: AT&T debuted the three new plans under its Unlimited Your Way lineup and touted the trio as providing the value and flexibility needed to fit every budget with the added perk of allowing customers to mix and match plans within multiple-
line accounts. All three of the new plans include AT&T’s ActiveArmor security. The new lineup includes AT&T Value 2.0, priced at $50/mo for one line with a progressive discount of $5/mo per line down to $30/mo per line with four lines. Under this plan, customers get 5 GB of data per line before any throttling occurs and 3GB of hotspot data per line. The AT&T Extra 2.0 plan costs $70/mo for the first line, then decreases to $40/mo per line with four lines thanks to a progressive $10/mo discount per line up to four lines. It includes 100 GB of high-speed data before throttling and 50 GB of hotspot data per line. The top-tier AT&T Premium 2.0 plan runs $90/mo for one line, drops to $80/mo for two lines and $65/mo for three lines, before dropping to $55/mo per line for four lines. This option features unlimited high-speed data, 100 GB of hotspot data per line, 4K streaming, unlimited talk, text, and high-speed data in Latin America, and gives customers the option to purchase a tablet or wearable device at a 50% discount per line. There has been analyst speculation that the increase in hotspot data on the Extra 2.0 and Premium 2.0 plans compared to AT&T’s now legacy mobile plans may have been enabled by the company’s access to the spectrum it’s in the midst of acquiring from EchoStar. But AT&T has already acquired additional spectrum from UScellular in a deal that closed earlier this year, so it’s possible that spectrum or a combination of the two has enabled the increased amount of hotspot data per plan.
Recon Analytics principal Roger Entner believes AT&T had heard customers’ concerns about affordability around the current economy and responded accordingly by providing two value-driven plans targeting more price-conscious consumers. The top Premium 2.0 plan then caters to those less concerned about affordability and willing to pay a little more for extras, adding value to that higher payment. According to Entner, AT&T’s new strategy should bring in more revenue for AT&T “on a net-net basis” that will please investors. The Premium 2.0 plan is priced at $10/mo less than T-Mobile’s top option but appears to line up with Verizon’s highest-tier plan. The Value 2.0 entry-level plan, meanwhile, has been priced to undercut those offered by T-Mobile and Verizon. Since the plans’ rollout, Verizon has noted that the AT&T 2.0 plans don’t offer the same kind of streaming and entertainment perks it offers customers. New Street Research analyst Dave Barden compared AT&T’s new and older plans and concluded that the carrier effectively lowered pricing for the mid-tier plan while increasing pricing on both the low and high ends. Barden pointed out that rather than representing the next volley in a wireless price war, AT&T’s strategy appears to encourage upgrades as a way to drive retention and increased ARPU. In this scenario, Value 2.0 customers may end up upgrading to the Extra 2.0 plan because of the minimal price jump between the two plans, while Extra 2.0 customers may find the data cap too limiting and buy up to the Premium 2.0 plan. But Barden also cautioned that some Premium 2.0 customers may end up downgrading to save money.
Days after the rollout of the new mobile plans, AT&T introduced its new AI-driven app, designed to simplify and enhance customer experience and replace the existing MyAT&T app. According to AT&T, the new app enables customers to manage both wireless and Internet services, shop, view usage stats, and set device controls. It includes a GenAI assistant that facilitates seamless access to various “buckets” of information in the same chat, without customers having to use buttons or menus to navigate to discrete components of the app. In a statement to Fierce Network, AT&T said the new app will enable customers to help themselves digitally, but that a human element remains available through brick-and-mortar stores and call centers. That differs somewhat from the T-Mobile strategy around the T-Life app, primarily T-Mobile wants customers to do most – if not all – of their business, on the app itself. AT&T’s coinciding launches of the new mobile plans and the updated app don’t seem to be accidental, but rather a concerted strategy to appeal to more customers and make a play for those looking for a simplified strategy focused on value and affordability.
