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AT&T Offers New Calling Plan

Zacks Equity Research

Premier telecommunication company AT&T Inc. (T) announced the launch of its latest international calling facility for a select group of customers. Starting Apr 12, the company’s GoPhone subscribers will enjoy a new global calling option under the Mexico Plus package.

Priced at only $10 per month, Mexico Plus offers 1,000 minutes of call time that can be made to any landline and mobile numbers in Mexico. It also has the feature of making calls to over 50 other countries, including Canada, China and India. Customers can avail this package along with AT&T GoPhone’s $50 monthly unlimited plan or $65 smartphone monthly plan with data.

From the aforesaid date, customers under the AT&T GoPhone plan will also have access to lower rates on the existing international long-haul packs. Users will receive call time of 250 minutes applicable in over 50 countries for only $5 a month.

AT&T – the second largest provider of wireless services in North America after Verizon Communications (VZ) – expects this new offering to gain popularity. Although a number of other prepaid international calling packages are available in the market, GoPhone Mexico Plus package enjoys an edge over them owing to its unique plans and affordable price that render high flexibility.

We believe that AT&T remains favorably positioned with strong growth prospects ranging from robust subscriber additions, higher smartphones adoption, expanding Long Term Evolution coverage, growing demand for mobile Internet to the introduction of various lucrative plans and services.

Nevertheless, constant access line losses, competitive threats, heavy subsidies for Apple Inc.’s (AAPL) iPhone sales and federal regulations will likely put some pressure on the company’s performance in the coming months.  

AT&T – which struck a multi-year agreement with The Walt Disney Company (DIS) in January – currently holds a Zacks Rank #2 (Buy).

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