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AT&T (T) to Raise U-Verse Service Prices Again in January
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U.S. telecom and pay-TV behemoth AT&T Inc. (T - Free Report) has announced a rate hike for a number of its programming packages like U-verse IPTV, DirecTV and Phone effective Jan 22, 2017. The higher cost of programming has compelled the company to raise the charges. Customers and city officials will be notified about the changes in the billing statements starting that date. This additional charge will be levied to recover a portion of the amount that local broadcasters charge AT&T to carry their channels.
To this end, on Dec 12, according to a TV Predictions.com report, Comcast Corp. (CMCSA - Free Report) , a leading cable multi-service operator (MSO) in the U.S., also announced that it will increase the monthly price of its TV, Internet and video services, by an average of 3.8% nationally. The effective date of the fee increases will vary from one market to another, staring as early as Jan 1, 2017.
Hiked Pricing Schemes
The U-Family and U-Family All In customers will see a $2 per month increase while U-100 will see a hike of $3 per month. AT&T’s ‘U-200’ and ‘U200 All In’ as well as its ‘U-200 Latino’ & ‘U200 Latino All In’ and ‘U300’ customers will see service prices increase by $5 per month. The rates of U-400 series, U 450 to U 450 Latino All In’ packages will increase by $8 per month.
The U-verse Broadcast TV Surcharge will increase by $1 per month in all markets except Montgomery, AL. In Detroit, MI, Biloxi, MS and Wilmington, NC the surcharge will increase by $1.15; and in Los Angeles, CA, Raleigh-Durham, NC and Jackson, MS it will increase by 61 cents. The AT&T’s Phone Unlimited plan of $35 and Phone 200 plan of $25 will increase by $1.
On Dec 5, the telco announced a price hike for eight of its nine base packages of DirecTV from $2 to $6 per month.
Price Performance
The stock ofAT&T was almost in line with the Zacks categorized U.S. wireless national industry’s performance in the past one year. Year to date, AT&T has gained 19.50% but failed to beat the industry's growth of 20.15%.
AT&T's acquisitions and strategic collaborations have played a major role in shaping its growth. If the acquisition of Time Warner Inc. by AT&T goes through, the combined entity will become a major player in the consolidated telecom-media space. Collaboration with Intel Corporation (INTC - Free Report) will help AT&T develop new software-centric network technologies. AT&T is also focused on expanding its 4G LTE wireless networks, field testing the next-gen 5G technology and strengthening its footprint in the Internet of Things (IoT) space with new tie-ups.
However, saturated wireless market, spectrum crunch, loss in access lines, stringent regulatory measures, union issues and tough competition are some of the major challenges which have likely obstructed the stock’s growth to beat the industry’s level and led to the stock’s current Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bottom Line
AT&T’s strategic move is common from a cable operator’s perspective, as they charge different prices in different markets due to marketing and competitive reasons.
These rate changes come at a time when AT&T is driving its new TV customers to DIRECTV’s offerings instead of its own U-verse TV offerings. Although the company is supporting its existing U-verse IPTV subscribers, it is not clear how long AT&T will continue with fiber-based TV offerings.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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AT&T (T) to Raise U-Verse Service Prices Again in January
U.S. telecom and pay-TV behemoth AT&T Inc. (T - Free Report) has announced a rate hike for a number of its programming packages like U-verse IPTV, DirecTV and Phone effective Jan 22, 2017. The higher cost of programming has compelled the company to raise the charges. Customers and city officials will be notified about the changes in the billing statements starting that date. This additional charge will be levied to recover a portion of the amount that local broadcasters charge AT&T to carry their channels.
To this end, on Dec 12, according to a TV Predictions.com report, Comcast Corp. (CMCSA - Free Report) , a leading cable multi-service operator (MSO) in the U.S., also announced that it will increase the monthly price of its TV, Internet and video services, by an average of 3.8% nationally. The effective date of the fee increases will vary from one market to another, staring as early as Jan 1, 2017.
Hiked Pricing Schemes
The U-Family and U-Family All In customers will see a $2 per month increase while U-100 will see a hike of $3 per month. AT&T’s ‘U-200’ and ‘U200 All In’ as well as its ‘U-200 Latino’ & ‘U200 Latino All In’ and ‘U300’ customers will see service prices increase by $5 per month. The rates of U-400 series, U 450 to U 450 Latino All In’ packages will increase by $8 per month.
The U-verse Broadcast TV Surcharge will increase by $1 per month in all markets except Montgomery, AL. In Detroit, MI, Biloxi, MS and Wilmington, NC the surcharge will increase by $1.15; and in Los Angeles, CA, Raleigh-Durham, NC and Jackson, MS it will increase by 61 cents. The AT&T’s Phone Unlimited plan of $35 and Phone 200 plan of $25 will increase by $1.
On Dec 5, the telco announced a price hike for eight of its nine base packages of DirecTV from $2 to $6 per month.
Price Performance
The stock of AT&T was almost in line with the Zacks categorized U.S. wireless national industry’s performance in the past one year. Year to date, AT&T has gained 19.50% but failed to beat the industry's growth of 20.15%.
AT&T's acquisitions and strategic collaborations have played a major role in shaping its growth. If the acquisition of Time Warner Inc. by AT&T goes through, the combined entity will become a major player in the consolidated telecom-media space. Collaboration with Intel Corporation (INTC - Free Report) will help AT&T develop new software-centric network technologies. AT&T is also focused on expanding its 4G LTE wireless networks, field testing the next-gen 5G technology and strengthening its footprint in the Internet of Things (IoT) space with new tie-ups.
However, saturated wireless market, spectrum crunch, loss in access lines, stringent regulatory measures, union issues and tough competition are some of the major challenges which have likely obstructed the stock’s growth to beat the industry’s level and led to the stock’s current Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bottom Line
AT&T’s strategic move is common from a cable operator’s perspective, as they charge different prices in different markets due to marketing and competitive reasons.
These rate changes come at a time when AT&T is driving its new TV customers to DIRECTV’s offerings instead of its own U-verse TV offerings. Although the company is supporting its existing U-verse IPTV subscribers, it is not clear how long AT&T will continue with fiber-based TV offerings.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>