T-Mobile (NYSE: TMUS) has completely redefined its motto as a mobile-carrier in 2013. From eliminating contracts, to removing roaming fees, and reducing minutes and texting charges. In addition T-Mobile introduced paying your phone in a monthly bill to the off-contract plan and eventually offering the “Jump” program for consumers who want to upgrade their phones twice a year.
Since the merger of AT&T (NYSE: T) and T-Mobile for $39 billion was canceled due to the fact that regulators from the U.S Department of Justice would had brought a lawsuit against the companies, the companies have once again become rivals. AT&T has now responded.
AT&T’s now offers up to $450 for consumers to switch to their company from T-Mobile. Well, this is not a cash offer or a full payment of $450 to your bill. AT&T will offer $200 per credit line and a $250 promotional card for a trade-in of an eligible smart phone. Trade-in value of the smart phone will be based on the device, year made, and condition. AT&T has not made clear what device will receive the full $250 value, but the promotional card can be only use toward AT&T products and services.
With the current promotion, AT&T is clearly pressured by the moves taken by T-Mobile throughout 2013. There have been rumors that T-Mobile is planning on offering a similar promotion during the Consumer Electronic Show (CES) 2014.
“Wireless has always been a very competitive industry and a move like this should not be unexpected,” a AT&T representative said. “As you know, there are handset promotions all the time.”
This will only benefit the consumers in the end by giving more deals and options