drag2share: AT&T is veering away from subsidized phones, and it’s paying off

source: http://www.engadget.com/2014/01/28/att-next-growing/?utm_source=Feed_Classic_Full&utm_medium=feed&utm_campaign=Engadget&?ncid=rss_full

The wireless industry in the United States is in the midst of some rather significant changes. Ever since T-Mobile implemented its Jump program early last year, the carrier has turned subscriber loss into massive gains. The company’s success is rubbing off, too. AT&T’s Next program is very similar to Jump, which lets customers pay off their phones in monthly installments and become eligible for upgrades earlier, and is just one example of a major transformation taking place throughout the industry.

According to AT&T’s earnings report, the company saw more than 1 million Next sales, which accounted for 15 percent of all smartphones sold in the quarter. AT&T CFO John Stephens elaborated in today’s investor call, saying that Next accounted for 20 percent of total sales in December alone. This doesn’t sound like much right now, but the big picture shows a different story. Next is actually growing at an incredibly fast pace, and it’s unlikely that AT&T will change course anytime soon.

At present, 1.5 million subscribers have signed onto Next. Again, this is a small number compared to the company’s total customer base (there are now 110 million subscribers, with nearly 73 million of t! hose being postpaid), but what’s interesting is how quickly that number has grown. According to the numbers, 1 million people signed onto Next just in the past quarter; this means that only 500,000 subscribers — one-third of its current total — were activated in the three months following its July launch.


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By: Dr. Augustine Fou Wednesday, January 29th, 2014 news

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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