|AT&T Follows Rivals, Ends Fees on Wireless Users Topping Limits|
1:00 PM EDT
AT&T Inc., the only U.S. wireless carrier still charging customers when they exceed data limits, has finally bowed to industry trends and is dropping the levies in a sign that competition for new customers is growing more challenging.
Starting Sunday, AT&T customers can select plans that will instead cut their connection speeds when their web surfing or video streaming approaches a monthly cap, according to a company statement. Previously, the extra charges were as much as $15 per gigabyte.
… the No. 2 U.S. wireless carrier is actually following competitors in trying to woo customers by ending overage fees and offering savings on larger data plans so videos aren’t interrupted. T-Mobile US Inc. has gained more than 7 million monthly subscribers over the past two years with low prices and features like free video streaming and no overages.
Under the new plans, AT&T is raising prices for smaller data allotments while lowering them for large data plans. The new offers start at $30 for 1 gigabyte of data, compared with $30 for 2 gigabytes on the previous plan. Larger data blocks like 30 gigabytes will be $135 a month, compared with $225 under the old plan.