AT&T's Brilliant Move Could Boost Growth in 2025
Telecom giant AT (NYSE: T) has been steadily gaining wireless and fiber internet subscribers over the past few years. Over the two-year period that ended on Sept. 30, AT grew its total wireless customer base by about 7.5 million subscribers. The company also added more than two million fiber subscribers over that time off a much smaller base, which helped to offset slumping demand for legacy wireline services.
Part of the reason why AT has had so much success growing its subscriber count is its incredibly low churn rate. Postpaid phone churn was most recently just 0.78%, a historically low level for the company that indicates that very few customers are jumping ship to competitors. There are multiple factors AT play, including sluggish phone upgrade rates.
One tool that wireless providers use to pull in new subscribers is enticing promotions for new customers. Heavily discounted smartphones, often tied to multiyear agreements, are commonplace in the industry. The downside of this approach is the cost. Giving away a brand-new iPhone for little or nothing to a new subscriber is an expensive way to win a customer, and there's no guarantee the customer won't jump ship for a competing offer once their contract ends.
Source Fool.com
