When investors think of innovative sectors, staid names like telecom behemoth AT&T (NYSE:T) typically don't jump to mind.
However, thanks in part to renewed competition from once-troubled names like T-Mobile (NASDAQ:TMUS), lumbering telecom giants like AT&T and Verizon are having to change their ways to maintain their stranglehold on the U.S. telecom market.
Catch me if you can AT&T
T-Mobile has been doing its part to stick it to the U.S. telecom establishment over the last several months as it eyes a comeback after years of stagnation. To do so, T-Mobile has been changing the structure and pricing of some of its services, taking steps like allowing no-contract plans, helping finance handset costs to consumers, and lowering the rates it charges on services like international roaming. As you could imagine, this has resonated especially well with younger users, much to the chagrin of establishment names like AT&T.
However AT&T isn't simply sitting idle while T-Mobile sticks it to them. Quite the opposite: AT&T has recently rolled out several initiatives aimed at countering some of T-Mobile's recent moves. In the video below, tech and telecom analyst Andrew Tonner breaks down AT&T's recent moves and what they mean for investors.