AT&T Offers T-Mobile Users Up to $450 to Switch Providers

by Karl Utermohlen | January 3, 2014 11:33 am

AT&T Offers T-Mobile Users Up to $450 to Switch Providers

AT&T (T[1]) is offering T-Mobile (TMUS[2]) users a $200 credit plus a phone trade-in that could be worth an additional $250.

A T and T ATT 9 300x199 AT&T Offers T Mobile Users Up to $450 to Switch Providers[3]AT&T’s promotion[4] comes as a response to its rival’s aggressive marketing approach over the last few months. No. 4 U.S. phone provider T-Mobile has been attempting to gain more customers by offering cheaper prices and more flexibility than its competitors.

The No. 2 phone provider in the U.S. will try to win over T-Mobile’s users by asking them to switch over to AT&T in exchange for a $200 credit as part of a limited-time offer. Additionally, users can trade in their smartphones for another smartphone worth up to $250 based on the model and age of the smartphone.

AT&T is especially vulnerable to T-Mobile’s marketing approach because both companies use the same network technology. T-Mobile CEO John Legere said that his company will try to appeal to families because many of AT&T’s customers have family plans that they’re attached to.

T stock is down 0.5% in early trading Friday. Meanwhile, TMUS stock has had a rough start to the year with shares down 3.3% today.

Endnotes:
  1. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  2. TMUS: http://studio-5.financialcontent.com/investplace/quote?Symbol=TMUS
  3. [Image]: http://investorplace.com/wp-content/uploads/2011/05/A-T-and-T-ATT-9.jpg
  4. AT&T’s promotion: http://www.chicagotribune.com/business/sns-rt-us-att-tmobile-20140103,0,7041147.story

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