AT&T Stoops to Giving Smartphones Away Free, Sort Of

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AT&T Inc. (NYSE: T) has been one of the bigger dogs in the fight in the telecom wars, and as such it has been able to make offers that other providers might not be able to make. For its most recent offer, this telecom giant has said that customers with eligible service can buy one of three popular smartphones and get one at no additional cost when they add a new line and buy both devices on AT&T Next or AT&T Next Every Year.

According to the plan, customers purchasing devices through this offer will receive monthly bill credits for the free device over 24 to 30 months totaling up to $695. Although, this requires eligible service, a minimum of $70 per month. Also available max credit varies by the device.

Keep in mind that the Apple iPhone 7 32 GB model starts at $649 in the United States and ranges up to $849 for the 256 GB model. The iPhone 7 Plus 32 GB model starts at $769 and ranges up to $969 for the 256 GB model.

New AT&T wireless customers can take advantage of $650 in credits for switching wireless providers, and they can choose to use the credit toward the purchase of their first device.

David Christopher, chief marketing officer of the AT&T Entertainment Group, commented:

We are excited to offer our customers our first BOGO of the year. It includes options for everyone, including business customers. Plus, these smartphones allow you to do more of what you love, like streaming your favorite shows data-free using the DIRECTV app, Fullscreen or DIRECTV Now.

Eligible consumer postpaid AT&T wireless customers receive access for one year from creation of Fullscreen account at no extra cost ($71.88 value) with the AT&T wireless plan. In-App streaming does not count against your data allotments.

The data-free streaming requires active AT&T postpaid data service on eligible device. The use is subject to wireless service terms, including those related to data speed, and streaming may not work at reduced speeds.

Shares of AT&T closed Thursday up nearly 1% at $41.95, with a consensus analyst price target of $43.10 and a 52-week trading range of $36.10 to $43.89.