AT&T and DIRECTV Join Forces
On Monday, wireless powerhouse AT&T began offering monthly discounts for customers who opt to bundle broadband internet, phone and wireless packages with DIRECTV’s satellite service. In addition to the above mentioned incentives, AT&T is also looking for alternative ways to utilize DIRECTV’s programming with TVs, PCs and other wireless devices.
AT&T’s former partnership with DISH Network was dropped in favor of DIRECTV, which services 17 million customers nationwide. As a part of their “AT&T Advanced TV” video portfolio, AT&T will resell DIRECTV services. Customers will receive a $5 monthly discount for combining DIRECTV services with any AT&T product. Those who were previously customers of both companies can contact AT&T to request the discount.
“Consumers today are looking for TV programming, features and equipment that enhance their entertainment experience, at a great price and as part of a complete, integrated bundle of services,” said AT&T’s vice president of video services, Jeff Weber, “by combining the strengths of our companies, we’re well-positioned to grow our subscriber base and build the foundation for future innovative features and integrated services.”
As an added benefit, the new partnership will assist AT&T in promoting its own video service called U-Verse. Analysts said that AT&T’s relationship with DIRECTV will supplement this service, making it possible to compete with cable companies such as Time Warner.
“U-Verse is a great product, but it’s not available everywhere – and it never will be available everywhere,” telecom analyst Jeff Kagan said. “In markets where it’s not available, or in markets where people want something else, it makes sense for them to offer DIRECTV.”
ATT and Lil Wayne Team Up
Among recent partnerships with entertainment companies and artists, AT&T has teamed-up with Cash Money Records rapper Lil’ Wayne. Through social media, which integrates technology, telecommunications and social networking, AT&T has been able to interact with a younger demographic. AT&T’s partnership with Lil’ Wayne utilized Facebook, a popular social networking website, to stream the premier performance of his latest single, “Prom Queen.”
“The youth segment is a really key segment, and we want to reach as much of that audience as possible,” Director of Music and Video Production for AT&T, Mark Nagel said. “[Social media] is really the perfect match to reach those customers in a place that is really relevant.”
Prior to the performance, Cash Money Records and AT&T promoted the campaign via e-mail and text message. Lil’ Wayne fan websites were also used to promote the event. AT&T’s decision to collaborate with Lil’ Wayne wasn’t arbitrary. According to Hitwise, “Lil’ Wayne” was YouTube’s most keyed-in search term in December. In addition to his dominant YouTube presence, AT&T customers downloaded Lil’ Wayne’s ringtones more than those of any other artist in 2008.
Facebook is quickly becoming a mainstream communications tool. “It’s a way for AT&T to differentiate and connect with different customers,” Nagel said in regards to AT&T’s goals in using social media. Lil Wayne’s performance of “Prom Queen” on January 27 was exclusively released on AT&T’s Freedom of Choice and Mobile Music Facebook pages, potentially reaching 1.3 million fans.
According to the Director of National Marketing for AT&T, Mimi Chan, AT&T was “able to drive a large number of customers to gain awareness of the campaign” through Facebook. “[We want to] engage younger customers to find relevance with our brand,” she said. “We want to resonate with them, so they know we have the best music, texting.”
iPhone Outsells Storm
On Wednesday, AT&T credited the sales of 1.9 iPhone 3Gs for boosting its fiscal fourth-quarter results. Attributing the profit increase directly to its partnership with Apple, the Dallas-based powerhouse reported $0.41 earnings per share (EPS) for the fourth quarter. AT&T announced 2008’s full-year earnings to be $2.16 per share, up from 2007’s earnings of $1.94 per share.
Fourth-quarter earnings reflect the success of AT&T’s partnership with Apple in launching the iPhone 3G. During the second half of 2008, AT&T activated 4.3 million iPhone 3G devices. This includes the 1.9 million activated in the fourth quarter. Approximately 40 percent of the above mentioned activations were for customers switching from another wireless provider.
Refusing to disclose details about the success of its iPhone competitor, the Blackberry Storm, New York-based Verizon released results Tuesday. According to the Wall Street Journal, Verizon activated approximately 500,000 Blackberry Storms. The iPhone’s nearly 2 million activations place the Storm’s success at a one-to-four ratio during 2008’s fourth quarter. In comparing the first quarter success of AT&T’s iPhone 3G and Verizon’s Blackberry Storm, the iPhone resulted in five times the number of activations.
"Customers across the country lined up to purchase the new BlackBerry Storm," stated Verizon’s press release. "The Storm offers customers the reliability of the Verizon Wireless 3G network and the full power of a revolutionary touch-screen, multimedia Smartphone with global connectivity."
Poor reviews and customer complaints may account for the Storm’s lackluster debut. Many reports claim that the Storm wasn’t ready for consumer use; various software bugs need to be resolved. The future of Verizon’s Storm is uncertain, while sales of AT&T’s iPhone continue to steadily increase.
According to Apple Insider blogs, the next generation iPhone may be launched as early as June 2009.
ATT Opens Up Jobs in Vermont
AT&T Mobility and Consumer Markets recently acquired assets of Rural Cellular Communications in Vermont, and as a result, AT&T is opening up almost 75 new jobs in that area. Rural Cellular Communications provided wireless communications services under the Unicel brand, and was a provider to both rural and suburban areas.
Rural Cellular Communications and AT&T have been working together for some time now, and AT&T Mobility wants a clean, smooth transition for both employees and customers. This means almost 75 new jobs in many categories, including sales and management. If you are interested in a position with AT&T, you are invited to apply online at http://www.att.jobs/.
As part of the transition, AT&T’s full portfolio of products (like the Blackberry Bold and the iPhone) will be at these formerly Unicel locations very soon. Probably mid-January will see these retail locations carrying AT&T’s wireless products and services. The rebranding may take slightly longer, to change colors, signs, and merchandise. This will most likely occur by the end of February.
Vice President of the Atlantic Region Legislative and Regulatory Affairs for AT&T Services, William Leahy, said, “When consumer demand for our products and services grows so do employment opportunities.” He added, “We are proud to be making a contribution to Vermont's economy during these difficult economic times and to be providing world class products and services to Vermont consumers.”
Vice President and General Manager of AT&T Mobility in New England, Steve Krom said, “In addition to building up our staff, enhancing and expanding our newly acquired wireless network in Vermont is our top priority. In fact, we are now planning next steps for launching our third generation (3G) high speed mobile broadband service in the state.” He added, “We look forward to welcoming former Unicel customers to the AT&T family and we're excited to offer all wireless customers in Vermont access to national calling plans with unique features like Rollover and the industry's hottest line-up of wireless products and services enjoyed by our customers across the country.”
AT&T, Not Walmart, Sells the $99 iPhone
Gossip swirled around the rumors that Walmart was selling iPhones for $99; however, hopes were crushed when the company stated they were just that, rumors. In fact, Walmart does sell the iPhone for a slightly discounted rate or $2, which isn’t much for the bargain hunter. Now there is a deal that is truly cheaper, at AT&T. AT&T is currently holding an end-of-the-year refurbished phone sale online. Hurry, this won’t last long!.
You can get the refurbished/reconditioned iPhone 3Gs for $99, which is about half of what it would cost you to buy it new.
However, with this deal, there are a few catches. Firstly, you are getting a refurbished phone, so that means they have been returned within the 30 day trial period. So, you might get a brand new phone that’s never been used, or you might get a phone that has a few minor scratches. On the positive side, even if your phone has been used, each phone has been tested and reflashed to include all the latest software technology, so each phone will meet the newest factory standards independently. With this deal, you’ll get the same 30 day no risk return policy, as well as a 90 day warranty. Another catch is that the prices are so good; the offer probably won’t last long. You also have to sign up with a two-year contract, with the $30 per month data plan, and a voice plan.
The Research Director of wireless devices for Current Analysis, Avi Greengart, said “Since most refurbished phones are units that were returned with the 30-day grace period for reasons having nothing to do with actual performance—coverage or personal preference—they can be a good deal, although it is not uncommon for refurbished units to have small scratches or other cosmetic issues.”
This refurbished phone will appeal to those who can’t quite reach the new price, as Chris Hazelton, research director of mobile and wireless for The 451 Group, said. Hazelton remarks, “The reduced price point for a refurb will be attractive to buyers who are intimidated by the $200 new iPhone price point but want the phone enough to accept a refurbished device.” He added, “But the fact that the device is refurbished will serve to protect the $199 new device price point—AT&T is using refurbs to appeal to more cost-conscious subscribers—and still get them on a data plan.”