AT&T Targeting DirecTV Subscribers To Sell Its Mobile Services

AT&T purchased DirecTV in 2015 for 49 billion dollars. Initially, it was looking for ways to sell its mobile services to DirecTV customers who do not have their mobile services since then. In wake of that, AT&T announced unlimited mobile data plans to DirecTV customers.

Later in 2016, AT&T started planning to launch three-tiered video service under the satellite TV provider’s brand, aiming users on mobile and other platforms. The carrier’s unlimited mobile data service, which cost $100 for a single line and a further $40 for each new line, offered 22 GB of 4G data at high speeds, and unlimited data at reduced speeds got over 2 million new subscribers in just two months after its launch.

Considering that each household has 2-3 mobile phones, this is a good opportunity. AT&T can make progress in the offer using dynamic ad insertion and other means. In order to increase ARPU, AT&T continues to target prepaid users. However, it is facing heavy drop in its postpaid users.

AT&T had a net loss of 215,000 branded postpaid users in the first quarter of 2016. It reported 2.3 million overall net adds in its prepaid phone gains. AT&T reported that Cricket’s new $70-a-month unlimited plan is trending and this would help to make up for their losses. The company is looking at handsets on a branded basis, which when including prepaid, is relatively flat, suggesting further postpaid handset losses going forward. Interestingly, AT&T looks comfortable with the replacing old low-end postpaid customers with new high-end prepaid customers.