Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Exclusive: AT&T considers cellphone plans subsidized by ads

Published 15/09/2020, 23:32
Updated 15/09/2020, 23:35
© Reuters. FILE PHOTO: John Stankey, CEO of WarnerMedia poses as he arrives at the WarnerMedia Upfront event in New York

By Sheila Dang, Helen Coster, Krystal Hu and Kenneth Li

(Reuters) - AT&T Inc (N:T) is considering offering wireless phone plans partially subsidized by advertising as soon as a year from now, Chief Executive John Stankey said in an interview on Tuesday.

The move, which has not been previously disclosed, underscores AT&T’s commitment to the advertising business as the U.S. phone carrier reviews its portfolio to identify assets to sell in order to reduce its debt load. AT&T is considering selling its advertising-technology unit Xandr, sources familiar with the matter have told Reuters.

“I believe there's a segment of our customer base where given a choice, they would take some load of advertising for a $5 or $10 reduction in their mobile bill,” Stankey said.

The planned launch of an ad-supported version of AT&T’s video-streaming service HBO Max next year will serve as a “foundational element” that will provide new advertising inventory, and would be key to new phone plans supported by ads, Stankey said without offering details.

AT&T has invested in developing targeted advertising on its own media properties using data from its phone, TV and internet customers, but the company has been “slower in coming up the curve” on developing a marketplace that would allow advertisers to use AT&T data to target other media companies’ audiences, Stankey said.

Stankey, who last week penned an op-ed for Politico stating that the U.S. government should provide subsidies to encourage companies to build fiber broadband networks in underserved areas, said in the Reuters interview that AT&T believes it could double its fiber footprint if it had the economic incentive.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Fiber or fiber optics are thin cables often installed underground that allow companies to deliver internet services to homes. AT&T uses fiber to deliver internet to homes and businesses as well as to power its 5G network.

AT&T’s fiber currently passes 18 million homes in the United States. The company could grow that number by 3 million to 5 million homes per year, he added said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.