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Summary:

Despite missing earnings and revenue estimates in Q3, AT&T reported significant subscriber growth, adding new mobile phone, fiber, and Internet Air customers. COO Jeff McElfresh discussed the company’s new advertising campaign, which directly addresses price wars in the industry and challenges T-Mobile’s claims about network coverage. AT&T is taking a more aggressive approach to calling out competitors, particularly T-Mobile, arguing that T-Mobile’s claims of network superiority are misleading and that AT&T offers a superior network, value, and service. McElfresh emphasized AT&T’s significant investments in building its network and its commitment to transparency.

News Article:

AT&T Takes Aim at T-Mobile Over Network Claims, Launches New Ad Campaign

NEW YORK, NY – AT&T (T) is firing back at rival T-Mobile (TMUS) in a new advertising campaign that directly challenges claims about network coverage and pricing. The move comes as AT&T reported Q3 earnings and revenue figures below analyst estimates, but also significant gains in subscriber numbers.

While the company missed financial targets, it added 405,000 new mobile phone customers, 288,000 fiber subscribers, and 270,000 Internet Air subscribers in the quarter.

During a recent interview, AT&T Chief Operating Officer Jeff McElfresh explained the rationale behind the new campaign. “We’re launching a new campaign based on feedback that we’ve received from customers all across the nation that the truth’s got to come out,” McElfresh said, referring to “price wars” and what he described as “deception” from competitors.

Specifically, McElfresh called out T-Mobile’s “price locks,” which he claimed have “loopholes,” and alleged that T-Mobile’s advertising claims about network size are misleading. “T-Mobile’s got the smallest network, over 300,000 square miles smaller than that of AT&T,” he stated. “We own and operate the largest, most reliable wireless network.”

This marks a shift in strategy for AT&T, which has historically avoided directly naming competitors in its advertising. McElfresh attributed the change to a need to defend the company’s investments in its network and to address what he sees as repeated misrepresentations by T-Mobile. “When you’re seeing a competitor who repeatedly is getting corrected by the Better Business Bureau’s advertising watchdog 16 times across four years… enough’s enough. It’s time for somebody to speak out on behalf of consumers.”

The new advertising campaign is expected to highlight AT&T’s network performance, value, and customer service, aiming to counter T-Mobile’s marketing efforts. The company will promote its network, aiming to give consumers the full picture of the advantages of its services.

Analysts are watching closely to see how T-Mobile will respond, and whether the increasingly competitive landscape will benefit consumers.

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