GO
Loading...

On the Call: AT&T exec on data-sharing plans

Following in Verizon's footsteps, AT&T Inc. introduced plans in August that let a household share a monthly data allowance over as many as 10 devices. Asked about early results on a conference call with analysts Wednesday, AT&T wireless head Ralph De La Vega said one of the benefits of the plans is that it encourages people who have hung on to "unlimited" data plans to switch to a limited-data plan.

QUESTION: Is the Mobile Share plan getting people to add more devices to the network, and how will it affect your profits?

RESPONSE: "The results from our Mobile Share plans are just fantastic. I am just thrilled with what we have seen early on. First of all ... the take rate, two million in five weeks, is outstanding. The fact that a third or more of our (subscribers) are taking the 10-gigabyte or higher plan says that the (average revenue per user) that we were expecting from these plans is actually higher than what we expected. So we don't anticipate these plans being dilutive (to profits), and in fact _ this is yet to play out _ they could be accretive ... In addition to that ... 15 percent of subscribers move from unlimited to Mobile Share plans. I think the more customers we have on usage-based plans the better we are. So I'm just really thrilled."