AT&T looking to reduce smartphone subsidies

AT&T might soon be reducing the subsidies for the devices sold on its network. The wireless operator CEO Randall Stephenson feels that the carrier can no longer afford to fund the maintenance and upgrade cycles of the smartphones it sells.

At an investor's conference in NY the AT&T said that the smartphone penetration is at over 75% currently and as it approaches 90%, the carrier would better focus on helping consumers make use of the network and not just attract them to it.

As a first measure, the carrier launched a new campaign where they offered an incentive of $15 per month to all its consumers who decide to get on with their old smartphones, instead of getting a new one with the new contract.

Randall Stephenson also said AT&T is working hard towards creating a balanced pricing structure. In the past, AT&T was one of the first carriers to cut down on the unlimited data plans and at the moment, about 70% of the carrier's consumer base gets charged based on their consumption.

Having covered the high end market with its LTE coverage, the carrier now wants to concentrate on the low end market and improve the overall experience on its network.

Meanwhile, T-Mobile seems to think otherwise as it has announced that it will be dropping iPhone down payments for the holiday shopping. The limited time offer has the 16 GB models of iPhone 5s, iPhone 5c, iPad Air, iPad mini and iPad mini with Retina display up for grabs with $0 down payment for new and existing customers.

You can get your hands on the iPhone 5s with monthly charges of $27 for a two year period. The iPhone 5c costs you $22.91 per month and of course, you need to stick with the carrier for the next two years. You can check out the second source link below to know more about the pricing and terms of the contracts.

Source 1 | Source 2