AT&T May Already Phase Out New Aio Prepaid Wireless Brand

AT&T plans to combine Aio with Leap if it acquires the company

   

ATTLogo AT&T May Already Phase Out New Aio Prepaid Wireless BrandAT&T (T) may already phase out its Aio prepaid wireless brand that it launched in May.

AT&T is planning to purchase  Leap Wireless (LEAP) and combine it with its Aio services. AT&T has offered Aio services in a few areas across the country since May and it took those services nationwide last month. There are currently more than 230 Aio stores, which are ran by independent dealers. Prepaid plans with the service cost anywhere from $40  month to $70 a month. AT&T announced plans to purchase Leap in July, but at the time it didn’t state its plans for Aio. AT&T plans to acquire Leap for $1.2 billion. The purchase would expand AT&T’s footing in the prepaid market and increase its spectrum holdings. Leap shareholders will vote on the transaction on October 24 and the transaction is expected to be approved by regulators, reports FierceWireless.

According to Channel Partners, Public Knowledge, Consumer Action and the Writer’s Guild of America have filed a petition with the Federal Communications Commission that would have it deny AT&T’s purchase of Leap. The groups claim that the merger of the two companies may eliminate the “low-cost and prepaid options” that are offered to millions of customers through Leap.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/att-may-already-phase-new-aio-prepaid-wireless-brand/.

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