Telecom giant AT&T is pulling out all the stops to tap synergies with its $48.5 billion DirecTV acquisition. After rolling out TV-wireless-Internet bundles earlier this month, AT&T is now making an attractive offer it hopes customers won’t refuse.
AT&T is offering a $500 per line credit to DirecTV and U-verse customers willing to switch to its wireless service. If this is appealing to you, though, move quickly. AT&T was clear that this was a limited time offer. The fine print reveals the deal ends on October 4 and is only available in “select locations.”
In fact, there are several nuances to what AT&T is ultimately offering. If you switch your wireless lines to AT&T you will receive a $300 credit on your bill for each line you port over -- if you buy a smartphone on AT&T Next for that line. If you want to get the full $500, you also have to trade in an eligible smartphone.
Turning Up the Heat
AT&T is also sweetening the pot with 10,000 Plenti points. Plenti is a rewards program that gives you perks at Exxon, Macy’s Mobile and Rite Aid. Of course, that may not be attractive to you if you don’t shop at any of those locations.
Practically speaking, if a family of four with DirecTV or U-verse TV switches four lines from a current wireless carrier to AT&T -- and if they buy and activate new smartphones on AT&T Next for all four lines, and if they trade in four eligible smartphones -- they’ll get $2,000 in total credits.
We caught up with Jeff Kagan, an independent technology analyst, to get his thoughts on the new deal. He told us this is exactly the kind of excitement he expected from the AT&T-DirecTV merger.
“AT&T is a very innovative competitor. DirecTV gives AT&T another superhighway to compete on. I expect we will see much more in the way of competitive offerings from AT&T-DirecTV,” Kagan said. “This will turn up the competitive pressure considerably on the cable television industry and companies like Comcast, Time Warner Cable, Charter and Cox.”
Wasting No Time
Last week, AT&T announced the first nationwide package of TV and wireless services with a single bill. Beginning today, AT&T is offering HD and DVR service for up to four TVs, along with unlimited talk and text for four wireless lines and 10 GB of shareable wireless data for $200 a month. That’s a savings of at least $600 in just the first year, according to the company.
As part of the August launch -- which will see the company sell DirecTV in over 2,000 retail stores around the nation -- AT&T will give subscribers access to DirecTV programming on their mobile devices through the DirecTV app even before the TV service is installed in their homes.
“AT&T is wasting no time extending the benefits of its DirecTV acquisition to consumers,” said Roger Entner, principal analyst at Recon Analytics. “With this newly integrated offer, it’s clear AT&T is focused on offering value on top of convenience to win new customers and become a leader in entertainment and communications.”
Posted: 2015-08-11 @ 3:23am PT
$500 - a $200 cell phone credit = $300
Subtract $100 for the install and you only end up with $200. Read the small print....
Posted: 2015-08-11 @ 1:17am PT
What happened to the laws put in place to prevent monopolies? Another giant with no real competition = bad service and high prices. Boo!
Posted: 2015-08-10 @ 10:08pm PT
Impressive, but still way overpriced.