AT&T's new package is the United States' first bundle that provides a combo of television and wireless phone services. This offer from one of the country's biggest telephone and Internet providers, was made after the telecom's recent takeover of the DirecTV satellite company, creating a game-changing provider of entertainment.
The new package will be available on August 10, Monday, and will cost $200 per month for the first year. AT&T purchased DirecTV for $48.5 billion, creating the nation's biggest television distributor with around 26 million subscribers, according to The New York Times.
Executives of the U.S. telco praised the merger. It has created a next-generation company offering entertainment to the screens of on-the-go customers via mobile devices, TV, and the Internet.
The new plan includes a wide array of services. They include digital and high-definition video recording, 10 gigabytes (GB) of wireless data, and unlimited texting and calling. Subscribers can also use the DirecTV app to enjoy television programs on smartphones, tablets, and PCs.
AT&T's major investment in the television business is happening with the number of "cord cutters" on the rise. They are choosing streaming options over traditional cable and satellite TV service.
Besides that, pay TV subscriptions are dropping. Companies such as HBO and CBS are now offering standalone streaming services as alternatives.
Research firm SNL Kagan reported that the number of U.S. households that paid for broadband service but not TV rose from 9.2 million in 2012, to 10.7 million in 2014. That was a 16 percent increase.
AT&T has two goals for its TV-wireless bundle. It will try to sign up new customers for its TV-wireless phone bundle, and talk competitors' customers into making the switch.
Brad Bentley is an AT&T Chief Marketing Officer. He stated that the company plans to unveil many products that integrate TV and mobile phone services.
Last week its competitors offered wireless promotions. T-Mobile froze prices for iPhone leasing, while Sprint offered a new family plan, according to The Sacramento Bee.
The original American Telephone & Telegraph Corporation was founded in 1885, while AT&T was launched in 1983 . It is the biggest provider of landline telephones in the U.S., and the second largest provider of mobile phone service.