AT&T bundles discount on DirecTV or U-verse TV package when combined with mobile
AT&T wasted little time putting together a package of services tying together its wireless and recently acquired DirecTV assets.
The carrier today announced that beginning Aug. 10, it will provide an offer of high-definition and digital video recording services for up to four TV receivers, and a four-line unlimited voice calling, text messaging and 10 gigabytes of shareable data for $200 per month. The telecom giant said the deal will save customers at least $600 in the first year compared with purchasing the services separately.
The package savings comes from combining the wireless plans, which retail for $160 per month before any per-device payment fees, a $50 per month “basic” TV plan and a $10 per month combined billing discount. The television package can also be from AT&T’s U-verse service that is available in 21 states, though the discount is only available to new DirecTV and U-verse customers.
Higher-priced and more feature-rich television packages will add accordingly to the overall package price, with the TV pricing only guaranteed for a one-year period, at which point the DirecTV option will increase by $35 per month and the U-verse option by $43 per month. A two-year contract is also required for the DirecTV service, with a one-year contract required for the U-verse TV service.
DirecTV and U-verse TV customers who switch their wireless service to AT&T Mobility are also eligible to receive the carrier’s ongoing $300 bill credit offer connected to purchasing a new smartphone via the Next installment plan.
AT&T said the offer will also allow new DirecTV customers to have “immediate access to programming” on their mobile devices at the point of sale through a “walk out and watch TV experience.” The feature is enabled through the DirecTV application with customers having a “limited time” to activate their mobile TV service. Customers are dinged from their data allotment if accessing the TV service via a cellular connection.
Outside the new package, AT&T also said it is continuing work on developing a new “over-the-top” video platform through its recent Otter Media joint venture with The Chernin Group and purchased stake in online media company Fullscreen.
The reminder looks to counter recent comments from Verizon Communications regarding the imminent launch of its mobile-first video service that is expected to operate under the Go90 brand. The video service also is expected to take advantage of its LTE Multicast technology, which Verizon has been trialing for a couple of years at major sporting events. The technology allows the one-way streaming of video content to multiple devices using a smaller section of wireless spectrum than current video-streaming services.
Broadband packages
AT&T is also offering high-speed Internet options to the mobile/TV packages that begin at $30 per month for speeds up to 6 megabits per second. Higher-speed data options include speeds up to 24 Mbps for $40 per month, and up to 75 Mbps for $50 per month. The Internet service includes a Wi-Fi gateway with the pricing guaranteed for one year, at which point nonpromotional pricing kicks in.
As part of the regulatory conditions for garnering approval for the DirecTV deal, AT&T initially committed to expanding broadband coverage to 15 million rural homes; to continue to offer a standalone broadband service providing at least 6 Mbps speed “where feasible” in current markets at a fixed priced for three years; to continue offering a standalone DirecTV service for at least three years; and continue its commitment to net neutrality efforts.
The telecom giant last month sweetened the commitments by stating it will, in a “reasonable time period” after closing, provide a “low-income discount program” to “qualifying” customers in its wireline footprint for four years “beginning a reasonable time period after closing,” with those discounts ending after four years.
AT&T said the discount program includes making available a DSL-based broadband service with speeds up to 5 megabits at $10 per month for a one-year period, rising to $20 per month for the remainder of the commitment, in markets where it currently offers broadband speeds in excess of 3 Mbps. In markets where its current broadband offering tops out at less than 5 Mbps, it plans to offer DSL services at up to 1.5 Mbps for $5 per month for a one-year period, rising to $10 per month for the remainder of the commitment.
The offers would only be made available to customers who: qualify for the government’s Supplemental Nutritional Assistance Program, with eligibility subject to annual recertification; are not a current AT&T wireline broadband customer or had been a customer for the previous six months; and are not currently in debt to AT&T over unpaid services.
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