AT&T; (NYSE: T) has announced that it will be providing free access to its 10,000 hot spots for subscribers to its residential broadband service.
Why would it do this?
In part, this move will drive an increased share of the residential broadband market, especially among households that have acquired one of AT&T;’s exclusive iPhones.
AT&T; is leveraging parts of the company that are performing well – mobile wireless – together with its WiFi assets in order to help with its battle against those pesky cable companies.
A side benefit is that mobile users may off-load some of their most traffic intensive applications away from the mobile network and onto the WiFi hotspots. It will result in a better user experience and lower capital cost structure.
Increased customer counts; increased revenues; happier customers; lower costs. Call it better bundling.