T-Mobile Renews Attack Against AT&T With Newspaper Campaign

T-Mobile US Inc. (TMUS) is once again taking aim at its favorite target: AT&T Inc. (T)

The company plans to run ads tomorrow in major newspapers ribbing AT&T for its latest promotion: an offer of as much as $450 to T-Mobile customers if they change carriers. Since T-Mobile has already agreed to pay the switching costs for subscribers who defect to T-Mobile, AT&T customers can now go to T-Mobile and then come back at no cost.

“T-Mobile announced they would pay early termination fees for customers if they broke up with AT&T and traded in their device for a new one at T-Mobile,” the new T-Mobile ads say. “Now AT&T has made that offer essentially risk free.”

The move is the latest salvo between two one-time merger partners that have become fierce rivals. Under Chief Executive Officer John Legere, T-Mobile has sought to undercut AT&T’s prices and overturn industry practices, such as long-term contracts. The effort has helped T-Mobile add more than 2 million customers this year, reversing a decline for the fourth-largest U.S. carrier.

T-Mobile is now adding more than two AT&T customers for each one it loses to the rival carrier, Chief Marketing Officer Mike Sievert said in an interview. That’s an increase from earlier this month.

“People are flocking to T-Mobile more than any time since we have been tracking it,” he said.

Mark Siegel, a spokesman for Dallas-based AT&T, declined to comment.

To contact the reporter on this story: Scott Moritz in New York at smoritz6@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.