AT&T failed to complete its merger with T-Mobile and it posted a $6.7 billion loss as a result, reports the New York Times.
How will they recoup that loss? By raising rates, of course.
AT&T’s tiered data plan now includes a little more data for a little more money — instead of 200 MB for $15 per month, users get 300 MB for $20. Instead of $25 for 2GB per month, users get 3 GB for $30.
This does two things — it generates more revenue from new customers and it manufactures loyalty from existing customers who want to keep their less expensive plans.
Will it work to make back $6.7 billion? Or will it just drive away customers?