AT&T launches mobile and tablet offers with annual equipment renewal

(AOF) – AT&T to sell connected devices with annual renewal commitment. The second American mobile operator is thus taking the path traced by its competitor T-Mobile, a subsidiary of Deutsche Telekom. Called AT&T Next, this formula will allow the customer to purchase a connected phone (“smartphone”) in monthly installments and to choose between getting a new phone after 12 months, or keeping the first one after 20 monthly installments. T-Mobile had launched an offer last week called Jump allowing, for 10 dollars a month, to benefit from a new phone twice a year. These formulas make it possible to regularly renew the fleet of connected mobile devices with customers who are now largely equipped. Furthermore,

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THE VALUE SECTOR

Telecom operators

The advent of 4G is leading operators to review their economic model. The main advantage of this technology is to increase the speed of the mobile Internet and to facilitate the transfer of data. 4G allows a charging speed that is seven times faster than 3G. The challenge for operators today is to make the investments made in 4G profitable. While until now pricing strategies have been built around voice and texting, unlimited plans should become the new standards. The system which consists of billing mobile Internet by volume with a charging system to be paid once the package has been consumed could be preferred.

Telecom equipment suppliers

Sales of smartphones are expected to exceed those of conventional devices as of this year according to a study by research firm IDC. Indeed the latter estimates that 918.6 million smartphones should be marketed this year, or 50.1% of total sales of mobile phones. By the end of 2017, smartphone sales are expected to reach 1.5 billion units and represent more than two-thirds of mobile phone sales. The fall in their prices and the development of fourth generation (4G) mobile telephone networks notably explain the success of these telephones. While until now demand has mainly come from mature economies, it is increasingly coming from emerging countries such as China, Brazil and India.