AT&T’s promotion 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.