AT&T is currently facing a dramatic increase in the number of postpaid subscribers. The company is willing to collaborate with the media company known as Time Warner. This partnership will certainly be a step ahead for the company because the wireless business has started losing a lot of customers. Based on the data revealed by an analyst from Cowen and Company Equity Research, AT&T is facing a terrible drop in the number of carriers.
Many customers gave up their subscription every quarter. The survey asked postpaid subscribers who have used the same carrier for at least two years what was their previous carriers. The top answer for those who were presently using Verizon, Sprint or T-Mobile was that they had used AT&T in the past. Nevertheless, in previous surveys, the responses were more mixed.
If we were to analyze the AT&T numbers, the study makes sense. This company has already lost approximately 268,000 subscribers during Q3 back in 2016. A Wells Frago analyst has predicted that AT&T lost 220,000 other subscribers during the fourth quarter. Nevertheless, AT&T argues that these losses happened because of a new and more focused retentions system. Thus, they decided to concentrate more on valuable customers, allowing those who has cheaper plans to switch to other cell companies.
Specialists argued that this is what a cell company in decline is expected to claim. However, this situation seems to make sense given the recent direction is chosen by AT&T. The cell company decided to concentrate more on high-value customers who pay cable, wireless service and TV service all in a bundle, or clients who at least subscribe to use DirecTV Now.
T-mobile is supposed to be stealing customers from AT&T. The strategy they have adopted is almost the complete opposite one, surprisingly attracting more and more subscribers. T-Mobile focuses on selling the single semi-unlimited data plan which is currently available, being bound to get multiple lines onto a single account.
As time passes by we will see which strategy adopted by these cell companies proves to be the most profitable ones, increasing their sales. However, previous events tend to support the idea that T-Mobile is going to succeed through their strategy. The wireless economics tends to support the idea that the more customers a company has, the better it is. The more customer a cell company has, the easier it is for them to boost their network.
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