Analysts: AT&T not worried about competition in the market, puts focus on network

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AT&T isn't that perturbed by recent pricing changes at its Tier 1 wireless rivals, according to a report from financial analysts who met with AT&T CFO John Stephens.

The report, by Credit Suisse analysts Joseph Mastrogiovanni, Henrik Herbst and Michael Baresich, notes that from AT&T's perspective, the "recent competitive activity is similar to what they've seen in the past, indicating management feels the market remains rational." In the meeting, the analysts said Stephens "stressed the importance of network quality over price, which is likely why we have continued to see low churn."

T-Mobile US, AT&T and other carriers have in recent months changed their rate plans in multiple ways, offering larger data buckets to some customers, raising prices on others and in general trying to retain customers and go after those who might be willing to switch.

Meanwhile, AT&T is plowing ahead with its LTE network build-out, which now covers around 280 million POPs. AT&T aims to hit 300 million by the summer. The analysts said that Stephens reiterated "the importance of network speed and quality in reinforcing" the company's competitive position.


Analysts: AT&T not worried about competition in the market, puts focus on network