Is AT&T Smart, or Desperate for Customers?

1 min read

AT&T (NYSE: T) has been the most aggressive of the three major wireless carriers with device promotions this year. The release of Apple‘s iPhone 12 prompted it to offer its existing customers the same promotions as new customers, something T-Mobile (NASDAQ: TMUS) and Verizon (NYSE: VZ) haven’t done.

But if you ask AT&T’s management whether it was a mistake to make such an aggressive offer while the competition may have been more conservative than expected, executives will say absolutely not. Instead, they see it as an opportunity to lock in existing high-value customers long-term.

Let’s examine that logic and what AT&T isn’t saying.

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