Image source: https://www.wired.com/images_blogs/business/2011/03/att_tmobile.jpg
T-Mobile is fully taking the gloves off against competitor AT&T, today T-Mobile took yet another jab at their rival. T-Mobile has been offering a free 1 year membership for DirecTV Now for any AT&T customer that switched to T-Mobile. Hulu is now being offered free for 1 year for AT&T switchers. All according to CNET.
This was mainly in direct response to AT&T selling DirecTV for $35 a month while not counting any data towards their customers while they're streaming DirecTV Now. T-Mobile's CEO also stated DirecTV Now is "barely watchable". T-Mobile is 3rd out of the 4 big wireless carriers, (Sprint 4th, AT&T 2nd, Verizon 1st), and they've been stepping up the fight against them all. T-Mobile seemed to always focus small, competing mainly with Sprint because they are close in numbers. Recently, T-Mobile has been picking a fight with AT&T, a company that is rapidly evolving and expanding. AT&T currently has a $85.4 billion deal on the table with Time Warner. T-Mobile recently announced their "Un-Carrier Next", which is a 3 point plan. The first is introducing plans where the price advertised is the price you pay, it bundles all fees and taxes together. The second is "KickBack" which refunds you credit for the data you don't use at the end of your billing period, and if you use 2GB or less, you'll receive $10 credit. Last is, the Un-contract, which is you only pay the price of the plan you picked until you want to change or terminate. Also, you have to be a postpaid customer to take part in this. This is all according to TmoNews. Here is an official "unboxing" video from T-Mobile on Un-carrier Next:
Also according to TmoNews, T-Mobile's CEO hinted that their is still a possibility of a Sprint and T-Mobile merger, but no clear interest on either side is present at this point in time.
Unfortunately for AT&T in the midst of all this, they're losing customers big time. BGR cited an analyst from Wells Fargo that predicts AT&T lost 220,000 customers in Q4 2016. AT&T already lost 268,000 during Q3 2016, according to that same article. Fox Business reported that AT&T is to record a $1 billion pre-tax loss for Q4 2016. AT&T is losing customers and money, but AT&T is investing a lot of that money in current projects and their future. AT&T is investing in the GB Internet field, they picked up DirecTV, and they're working on becoming a content supplier. Those loses however benefit companies like T-Mobile and Sprint, while some upgrade to Verizon. AT&T gets hurt in the short-term, but may prosper in the long-term. Can T-Mobile pull the upset? Unfortunately, not by themselves. T-Mobile will likely have to pair up with Sprint, or some other media/telecommunications company to get the money and resources needed to sit at the same table with AT&T and Verizon. Simply, T-Mobile may be gaining customers (1.4 million net postpaid adds per Phone Arena), and cash, but being owned by German firm Deutsche Telekom there are hurdles in the board room. T-Mobile lacks in infrastructure and are simply too financially far behind AT&T and Verizon, that they'll never catch up. Sprint also faces that same reality. T-Mobile will continue to grow and expand, possibly a merger with Sprint will happen in the future, and that could really shake up the industry and markets. Even though T-Mobile can't single handily take out AT&T, they can make their wireless plans much more attractive to customers and compete directly with the big boys on that front. Per Google, here are the 5 day stocks for T-Mobile and AT&T (Click for larger images):
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