Wells Fargo: Hard-to-leave family data plans will keep subscribers from ditching AT&T
AT&T’s (T) shared family data plans may have been roundly mocked by Sprint (S) but Wells Fargo analyst Jennifer Fritzsche thinks the upside for the carrier outweighs any backlash generated by sarcastic ads. In a recent note to investors, Fritzsche maintained that AT&T will outperform its current projections in part because its shared data plans will make harder for subscribers to leave since they’ll have to switch their accounts jointly rather than separately.
Specifically, Fritzsche notes that “the process of ‘unwinding’ these accounts are all the more difficult” compared with single accounts and will create a “very ‘sticky’ customer base.” Fritzsche also throws cold water on the idea that AT&T will face a mass customer exodus over the LTE iPhone, explaining that AT&T has survived similar challenges in the past and is well-equipped to handle additional competition.
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