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In the wake of traditional pay-TV practices, the service requires a two-year contract, with packages starting at $ 59.99 per month for approximately 70 channels. After the first year, the price goes up to $ 93 a month. Qualified customers can bundle AT & T's Internet service and TV from $ 89.99 per month for the first year of the contract.
"Not much difference," said Walt Piecyk, independent telecommunications analyst. AT & T will not lower competitors' prices, but it fits well with its strategy. The company's priority is to reduce its debt and is ready to lose customers if they are not profitable.
"Investors should not be surprised that AT & T is not the price leader in the market," he said.
Additional TV channels cost $ 10 a month and you can not watch more than three channels at the same time. Activation costs $ 19.95, regional sports networks are not included and not all local broadcast networks are available. The price includes 500 hours DVR recording. Price levels are similar to DirecTV's offerings.
AT & T says it's going to forgo unlimited data charges of $ 30 a month for subscribers who bundle the television service with AT & T's broadband. Like Comcast Corp. and some other broadband providers, AT & T limits the use of data. AT & T customers with lower level plans are limited to 1 terabyte of data per month. The penalty for exceeding this limit is $ 10 for each additional 50 gigabytes.
"This is a pilot program," said AT & T spokesperson Chip Wilson. "We will collect customer feedback and determine what works or does not work."
Scott Moritz, Bloomberg
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