REUTERS The AT&T logo is seen at their store in Times Sqaure in New York April 21, 2010.
AT&T fired the opening salvo last week by offering up to $450 promos for T-Mobile subscribers to shift to AT&T. It consists of a $250 promotional card for AT&T producers and services if they trade in their current smartphones and $200 for the telco giant's double-dipping Next service, a device a full retail price or activation of an owner's gadget.
In turn, ZDNET reports speculations that T-Mobile could announce at the CES a counter offer to pay the early termination fees (ETFs) for AT&T clients to change to T-Mobile. Called project Houdini, Washington Post said T-Mobile would give new subscribers, especially families, up to $350 of credit to cover the ETFs from their old service provider.
However, ZDNET writer Matthew Miller pointed that while the AT&T offer appears to be attractive, he said there is no savings in switching telcos since T-Mobile charges $130 a month for 5 phones, while it would cost consumers $195 for the same level of service from AT&T.
He commended T-Mobile for shaking up the U.S. wireless space and challenging other telcos to begin thinking outside the box, but at the same time added that T-Mobile clients not satisfied with T-Mobile's coverage and service could use the intense rivalry between the two telcos to switch service provider.
For more of the AT&T and T-Mobile competition, here's a video: