Science & Technology
Science and Technology
Science and Technology
Mon, June 7, 2010
Sun, June 6, 2010
Sat, June 5, 2010
Fri, June 4, 2010 AT&T, Apple, Verizon, Sprint Nextel and Deutsche Telekom
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: AT&T (NYSE: [ T ]), Apple (Nasdaq: [ AAPL ]), Verizon (NYSE: [ VZ ]), Sprint Nextel (NYSE: [ S ]) and Deutsche Telekom (NYSE: [ DT ]).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ]
Here are highlights from Thursdaya™s Analyst Blog:
AT&T Kills Unlimited Data Plans
In a major move, AT&T (NYSE: [ T ]) has introduced new data plans for its smartphone and iPad users, thereby bringing its existing unlimited data plans to an end. The new price plans, which replace AT&Ta™s current $30 monthly unlimited wireless data plan, however, do not affect the carriera™s existing subscribers who can continue with the benefits of unlimited usage.
Nevertheless, existing smartphone users have the option to switch to the new plans without extending their service contracts. AT&Ta™s announcement comes ahead of the introduction (likely June 7) of the next-generation iPhone by Apple (Nasdaq: [ AAPL ]).
Ma Bella™s new strategy indicates a paradigm shift in wireless tariff structure as the industry is again becoming more and more inclined towards a tiered (or metered) pricing system, replacing the existing flat-monthly unlimited plans. Carriers abandoned tiered plans years ago when they launched unlimited plans to encourage customers to spend more on data services.
Under the new structure (effective June 7, 2010), AT&Ta™s customers have the option to choose from two data plans, namely, DataPlus and DataPro, according to their needs. The $15 per month DataPlus plans offer 200 megabytes (MB) of data and are tailor- made for subscribers, who use their handhelds for web surfing, email and social networking. If a customer exceeds the monthly usage quota, he/she will be allocated another 200 MB for an extra $15.
DataPro has been designed for heavy data users and offers 2 gigabytes (GB) of data for a monthly charge of $25. Customers who exceed the usage limit will be provided 1 GB of data for another $10. Users of this plan can tether their smartphones to laptops to access the Internet for an additional $20 a month. Tethering for iPhone will be available on the forthcoming model.
AT&Ta™s move comes as a consequence to the data overload on its networks, especailly due to heavy usage by iPhone and iPad users. The carrier remains challenged by serious mobile data traffic congestion as a result of high-bandwidth demand on its network due to excessive data usage. AT&T has stated that roughly 3% of its smartphone customers (essentially the iPhone and iPad users) account for 40% of overall smartphone data usage.
AT&T is making significant investment on network infrastructure improvements across highly congested areas to offload traffic from its overcrowded network. The carrier expects the new price plans to curb heavy data usage.
The sunny side of AT&Ta™s new policy is that customers who use less volume of data have to pay much less than those using their smartphones to access high-bandwidth applications (such as HD video streaming, Internet music or downloading huge data files). AT&T claims that 65% of its smatphone customers use less than 200 MB of data and will thus benefit from the DataPlus plan.
On the other hand, customers using more data may experience a bill shock, especially if they exceed the allocated monthly data limit, given the overage charges. So atiered-pricing" has reappeared to affect heavy data users.
It will be now interesting to see whether AT&Ta™s Tier-1 rivals follow suit with similar strategies. Archrival Verizon (NYSE: [ VZ ]) recently revealed its plans to shift to a tiered pricing policy for its 4G data plans, which are based on data usage. However, Sprint Nextel (NYSE: [ S ]) seems to be stuck with the unlimited approach while Deutsche Telekoma™s (NYSE: [ DT ]) US unit T-Mobile USA appears indifferent. Nevertheless, AT&Ta™s revised pricing policy may reignite price competition among top-tier US carriers.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: [ http://at.zacks.com/?id=5516 ]
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4580 ].
Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.
Follow us on Twitter: [ http://twitter.com/zacksresearch ]
Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
