Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Build Apps 5x Faster
For Half the Cost
Enterprise Cloud Computing

On Force.com
Mobile Tech
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
AT&T
AT&T's Answer to T-Mobile: Budget Brand Aio Wireless

By Jennifer LeClaire
May 9, 2013 1:46PM

    Bookmark and Share
"The wireless world suddenly has another competitor. If handled correctly, Aio Wireless could grow into a well-known brand name in the prepaid market," said analyst Jeff Kagan of AT&T's new low-priced brand. "Aio Wireless has the marketing know-how of AT&T behind them. Aio Wireless is a prepaid service designed to serve this young and rapidly growing market."
 



T-Mobile threw down the low-price gauntlet, and AT&T isn't hesitating to pick it up and run with it. AT&T has launched Aio Wireless, a value-oriented brand, to compete with the fourth-largest carrier on its low-cost turf.

AT&T is billing Aio Wireless as a nationwide wireless service for consumers looking for a first-class wireless experience at a value price. Like T-Mobile, Aio offers unlimited talk, text and data with no annual contract. But T-Mobile doesn't have anything to worry about in most of its markets in the near term.

That's because Aio will roll out slowly over the year. The first markets to get the new service are Houston, Orlando and Tampa. Three new markets will come online in the coming weeks, according to the company.

Understanding the Plans

"We talked with no-annual-contract customers and created our service around what they want," said Jennifer Van Buskirk, president of Aio Wireless. In her research, she said, no-annual-contract customers want simple, easy plan choices with unlimited offers; first-class service at affordable prices; great devices; nationwide voice and data coverage; and no annual contracts.

"We are set up to win over value-conscious customers who are increasingly moving towards smartphones and mobile broadband," she said.

Aio has three rate plans to choose from for smartphones, tablets and feature phones. The company will offer devices from several manufacturers, including Samsung, Nokia, and ZTE. There was no mention of the iPhone.

Aio's unlimited talk, text, and data rate plans range from $35 to $70 per month and promise 4G download speeds of up to 4 megabits per second. Aio will allow customers to bring a compatible, unlocked device for activation on the network.

Cracking Open an Opportunity

Some may view the launch of Aio as ironic, considering AT&T's failed bid for T-Mobile. Will it work? Wireless industry analyst Jeff Kagan said Aio is not a transformation of the wireless space -- it is a new slice to the wireless pie giving customers more choice.

"The wireless world suddenly has another competitor. If handled correctly, Aio Wireless could grow into a well-known brand name in the prepaid market," Kagan said. "Aio Wireless has the marketing know-how of AT&T behind them. Aio Wireless is a prepaid service designed to serve this young and rapidly growing market segment."

While prepaid is a rapidly growing market segment, Kagan said post-paid brand names have not cracked open this new opportunity. AT&T is trying with Aio, and may be just what customers want.

"Many prepaid customers today buy from lesser-known brand names," he said. "There is an opportunity here if Aio Wireless can hit the target.

"Will Aio Wireless crack open this new opportunity? We'll have to wait and see, but that is obviously their plan. These are many of the same people that created the Cingular success story. Cingular rapidly grew into the most successful brand name in wireless. Can they make lightning strike twice?"
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Mobile Tech
1.   Nokia X Phones Had Identity Crisis
2.   GoTenna: Work-Thru for Dead Zones
3.   Microsoft Axes Android Phones
4.   Apple-IBM Deal Weighs on BlackBerry
5.   Google Adds Features to Wallet App


advertisement
Android SMS Worm on the Loose
Malware lets bad actors cash in.
Average Rating:
Review: Microsoft's Surface Pro 3
Is it a tablet and laptop replacement?
Average Rating:
Nokia X Phones Had Identity Crisis
'Gateway' devices didn't resonate.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 
Large-Volume DDoS Attacks Hit Record in 2014
The number of distributed denial-of-service (DDoS) attacks set a record in the first half of 2014, according to a report by Arbor Networks. The number of attacks over 20 GB/sec doubled.
 
U.N.: Nations Hide Rise in Private Digital Snooping
Governments on every continent are hiding an increasing reliance on private companies to snoop on citizens' digital lives, the U.N. human rights office says, with grave concerns about privacy.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.