AT&T considers cellphone plans subsidized by ads

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(Reuters) – AT&T Inc T.N is brooding about offering wi-fi mobile phone plans partly subsidized by advertising and marketing and marketing as quickly as a 365 days from now, Chief Executive John Stankey mentioned in an interview on Tuesday.

The distinction, which has no longer been previously disclosed, underscores AT&T’s dedication to the advertising and marketing and marketing alternate as the U.S. mobile phone carrier evaluations its portfolio to title assets to sell in give away to minimize its debt load. AT&T is brooding about selling its advertising and marketing and marketing-know-how unit Xandr, sources accustomed to the matter dangle instructed Reuters.

“I factor in there’s a phase of our buyer inappropriate the set apart given a resolution, they would take some load of advertising and marketing and marketing for a $5 or $10 reduction of their mobile bill,” Stankey mentioned.

Varied companies alongside side Amazon.com Inc AMZN.O, Virgin Mobile USA and Jog’s Enhance Mobile dangle tested advertising and marketing and marketing supported mobile phone products and companies because the early 2000s but they’ve no longer caught on. AT&T is hoping that better advertising and marketing and marketing concentrating on would possibly perchance per chance also revive the muse.

The planned beginning of an advert-supported model of AT&T’s video-streaming service HBO Max subsequent 365 days will relief as a “foundational element” that would possibly perchance present unusual advertising and marketing and marketing stock, and would possibly perchance perchance be key to unusual mobile phone plans supported by commercials, Stankey mentioned without offering miniature print.

Stankey mentioned advert-supported mobile phone plans would possibly perchance perchance be presented in “a 365 days or two.”

AT&T engineers are creating “unified buyer identifiers,” Stankey mentioned. Such know-how would enable marketers to title users all by extra than one units and relief them linked advertising and marketing and marketing.

The capability to very finest tune advert concentrating on would enable AT&T to sell commercials at bigger charges, he mentioned.

AT&T has invested in growing centered advertising and marketing and marketing by itself media properties the usage of recordsdata from its mobile phone, TV and cyber web prospects, however the firm has been “slower in coming up the curve” on growing its marketplace that allows advertisers to exercise AT&T recordsdata to aim a kind of media companies’ audiences, Stankey mentioned.

In March, AT&T’s Xandr struck a deal to accomplice with Walt Disney Co DIS.N and AMC Networks AMCX.O to let advertisers steal TV commercials all by the networks.

AT&T’s advertising and marketing and marketing marketplace, which contains recordsdata from out of doors AT&T, would possibly perchance per chance also face privacy challenges as shoppers command rising topic about monitoring of their media exercise all by platforms and licensed guidelines akin to the California Consumer Privacy Act had been passed.

“I don’t know if we can rely on it in perpetuity,” Stankey mentioned, referring to the exercise of non-AT&T-owned recordsdata.

Stankey, who closing week penned an op-ed for Politico stating that the U.S. government need to mute present subsidies to support companies to own fiber broadband networks in underserved areas, mentioned within the Reuters interview that AT&T believes it would possibly perchance per chance truly also double its fiber footprint if it had the commercial incentive.

Fiber or fiber optics are skinny cables on the entire set apart in underground that enable companies to advise cyber web products and companies to properties. AT&T uses fiber to advise cyber web to properties and companies to boot to to energy its 5G community.

AT&T’s fiber presently passes 18 million properties within the United States. The firm would possibly perchance per chance also develop that quantity by 3 million to 5 million properties per 365 days, he added.

Reporting by Sheila Dang in Dallas; Helen Coster, Krystal Hu and Kenneth Li in Recent York; Enhancing by Cynthia Osterman

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