Now that AT&T has taken ownership of DirecTV, it has rolled out the first set of offers combining the two companies' products.
Boasting the "first-ever nationwide package of TV and wireless services—all from a single provider on one bill, with special discounts," AT&T announced an offer combining DirecTV's satellite TV with AT&T's cellular plans for families. This offer, available from August 10 until November 14, requires customers to sign a 24-month contract for the DirecTV part of the package. They'll pay $200 a month for "HD and DVR service for up to four TV receivers, unlimited talk and text for four wireless lines, and 10GB of shareable wireless data."
There's also an option to bundle AT&T's pre-existing U-Verse TV service with wireless for similar prices, available in the 21 states where AT&T already offered pay-TV. That one requires a 12-month contract.
AT&T claims that it is providing "an annual savings of $600 or more in the first 12 months," but that's only true compared to existing U-verse TV prices.
The wireless package of 10GB to share across four lines costs $160 per month by itself if you purchase the phones outright. AT&T already offers this deal, so there's no need to purchase TV service in order to get it.
The biggest discounts are for TV service. The basic DirecTV or U-verse TV services are being made available by themselves for $50 per month for 12 months, compared to the standard rates of $85 for DirecTV or $93 for U-verse. If you combine the $50 TV service with the $160 wireless service, you get an extra $10 monthly discount, resulting in the $200 price quoted by AT&T. For that first year, you'll pay $540 less than you normally would for basic DirecTV service and wireless, or $636 less than you normally would for basic U-verse TV and wireless.
Whether you get DirecTV or U-verse, you'll pay the standard TV rates once the first 12 months is up, eliminating nearly all of the savings. In other words, it's similar to how most bundles work today, with big up-front discounts followed by hefty price increases. A TV package with extra channels will also add another $20 to $75 a month in that first year.
Early termination fees are up to $480 for DirecTV deals and up to $180 for U-verse. The offer is available for new DirecTV or U-verse customers only. But existing TV subscribers who switch to AT&T wireless from another carrier "will receive a $300 bill credit when they buy a smartphone on AT&T Next and trade in an eligible smartphone," AT&T said.
AT&T also announced promotional pricing for its DSL and fiber-to-the-node Internet service: $30 per month for up to 6Mbps, $40 per month for up to 24Mbps, and $50 per month for up to 45Mbps or 75Mbps. These prices will also go up after 12 months.
TVPredictions.com CEO Phillip Swann called the bundle offers "tone-deaf," writing that AT&T seems to be "ignor[ing] everything that has been happening in the industry over the last year."
That includes Dish's $20-per-month Sling TV live TV streaming service, Verizon's skinnier "Custom TV" bundles, and Comcast offering live TV without a cable subscription.
AT&T, meanwhile, is "doubling-down on the expensive bundle concept," complete with contracts and early termination fees, Swann wrote.
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