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AT&T Inc. (NYSE:T) Spares DirecTV Customers From Data Cap Worries

AT&T Inc. has excluded DirecTV customers from data caps. In order for customers to be a part of the exclusion, they have to download the latest DirecTV app. They can also choose to update the U-Verse apps. The newly announced offerings are a part of the integrations that AT&T has been incorporating into its offerings since it acquired the TV firm in 2015.

AT&T Inc. Puts the TV in Your Pocket

“Our customers want to take their TVs with them, and our new DirecTV app allows just that,” stated David Christopher, an executive at AT&T. Christopher added that the new offering will allow users to get access to the content they want. They will naturally be able to get it at any time they want. Prior to the announcement, users would be feeling restricted to use the service. It is because streaming too much content would quickly burn through their monthly data allotment. Those worries are out of the way now.

AT&T Inc. (NYSE:T) Spares...

AT&T announced that taking advantage of the offer will be automatic and easy once the users are registered. The move highlights the growing trend among mobile service providers. They are offering free access to various websites and content streaming services via their mobile networks. AT&T’s rival T-Mobile US Inc also has a similar service called ‘Binge On’ which allows its subscribers to stream content from more than 100 streaming services without worrying about data caps.

“With these schemes, AT&T Inc.  seems intent on favoring its own video content under the DirecTV brand,”stated Matt Wood, policy director at DirecTV. Wood believes that this move will have a negative impact on diverse content creators.

What Does AT&T Plan to Do with DirecTV?

In one word: integration. The firm had taken part at the Wells Fargo Convergence & Connectivity Symposium . There, Jennifer Fritzsche from Wells Fargo Securities had a chat with Bill Smith, president of Technology Operations for AT&T Inc.  The analyst began with an open ended question. She asked Bill whether he can talk a little bit about their key priorities from his seat for 2016. In response, Bill stated that he thinks that their CEO Randall Stephenson had laid it out very well. That is, an objective to be the preeminent integrated carrier in the world. Bill agreed that it sounds like a tall statement, but he also stated that they take it very seriously.

The CEO’s objective is that they start with an effortless customer service. The customer experience is everything, making it easy for people to do business with them. Particularly, some of the things that they are doing in the enterprise space are exciting. Products like network-on-demand let a customer literally change their service profile on the fly. They do it themselves without any delay or having to interface with anyone else. So that is a key part of their mission there. This applies to enterprises for sure. It even applies to their consumer mass market. E.g. What they’re doing with the DirecTV assets is to bring a more integrated experience to their customers.

And the third pillar is looking at more global capabilities to serve their customers. Now obviously they’ve taken a big step in Mexico in Latin America in that regard. But they’re also looking at being able to do that more broadly around the world. They can basically drop nodes anywhere around the world. They can offer identical capability anywhere in the world as long as they have the right connectivity. So, Bill thinks that this is going to be a big enabler for them, and that it’s a lot indeed.

The next pillar is focused on cost. Everything they do has a relentless focus on cost, because they understand what’s happening in the industry. As consumption increases, their customers are not looking to pay them more for the added services they consume. So they have got to really be maniacal about cost control and they’re doing that.

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