Since it started the many facets of its "Uncarrier" initiative, it has been like a game of chicken between T-Mobile and the other three big carriers for some time. While some could argue that all of them have made shifts in their strategies because of T-Mobile's relentless pursuit of new customers, most of the changes (except for Sprint's) have been small enough that they could be attributed to nothing but typical market pressure. Of course, that wouldn't be looking at the big picture, and there is now solid evidence that T-Mobile's strategy has begun to take its toll on its competitors.
Apparently, AT&T was the first carrier to blink. According to the latest info from industry analysts at Wells Fargo, the main reason AT&T decided to dump its subsidy program now was because they have been hemorrhaging customers at nearly the same rate that T-Mobile has been gaining them. This caused AT&T to radically overhaul their business model to try and reverse the trend. Dumping subsidized plans was simply one facet of that, as was their new plan to offer mobile data plan discounts to their Direct TV and U-verse customers who bundle.
Here's a quote with more of the details,
If you are wondering what prompted the carrier to leave the Dark Side and join the bright new dawn of contract-free wireless, look no further than diminishing customer base and high churn levels. Wells Fargo analysts issued their forecasts how the major US carriers may have fared during the holiday season quarter, and AT&T is the only one with a net subscriber loss there. Both Verizon and Spint are expected to post stable growth numbers, while T-Mobile is simply doing fabulous, according to the investment bank's report: "These [1.29 million]customer additions and churn numbers continue to be impressive, in our view, with TMUS capturing the overwhelming majority of postpaid handset growth."
What do you think? Did T-Mobile put the hurt on AT&T enough to cause a big shift?
Source:
T-Mobile doing fabulous at the expense of subscriber loser AT&T, tip analysts