Refreshed fiber plans
AT&T’s new fiber plans. | Image by AT&T
AT&T will launch new fiber plans on June 7. The 300Mbps tier serves as the new entry-level option, costing $50/month on its own or dropping to $35 if you pair it with wireless.
The 500Mbps and 1-Gig plans will run $65 and $80, respectively, and their bundle price will be $50 and $60.
Finally, there’s now a 5-Gig plan that lands at $125/month standalone, or $100 with cellular service.
Simplifying
The current lineup. | Image by AT&T
AT&T‘s offerings are currently a little crowded with six different options. The current baseline gives you 100Mbps for $45/month, and there’s also a 2-Gig plan sitting at $155/month. Both of those are getting axed.
All current plans are more expensive than the soon-to-be rolled-out versions, but the difference isn’t that drastic when you factor in the current discounts.
Capitalizing on its strengths
AT&T has the largest fiber network in the US. The company offers top-tier download speeds and decidedly higher upload speeds than rivals.
The bundling of wireless and fiber is considered the real convergence strategy, with other internet technologies not coming even close.
AT&T and Verizon have been found to have a higher wireless share in the markets where they also have a fiber network.
While AT&T has offered combo discounts for a while, it’s only now that it’s explicitly baking them directly into the rate card for all customers.
Lowering the price barrier
According to BNP Paribas, AT&T has lowered the entry point to make the service accessible to new segments, including price-sensitive customers. This is part of the company’s strategy to boost fiber penetration to 50%.
The firm further reports that customer focus is shifting from fast speeds to price, which makes AT&T‘s move all the more prudent.
