The nation’s second-largest wireless carrier is expanding its footprint in the prepaid mobile business.
On Thursday, AT&T (NYSE:T) launched Aio Wireless, which provides contract-less prepaid voice, data and text plans to customers nationwide. The service first debuted in AT&T stores in Orlando, Fla., Houston, and Tampa, Fla., with plan prices between $35 and $70 a month, but will be added to more markets across the country during the next twelve months, the Associated Press noted.
Customers who opt for pre-paid plans must acquire their mobile devices at full price, compared to contract plans, which subsidize smartphone and tablet purchases. Prepaid plans generate lower margins for wireless carriers, but are attractive to budget-oriented consumers.
However, T-Mobile was subsequently sued by Washington state’s attorney general who called the plans “deceptive.”
Shares of AT&T rose slightly in Friday morning trading.