AT&T Tries To Buy Loyalty After T-Mobile Barbs

AT&T has ramped up its retaliation against T-Mobile, responding to criticisms that it was not doing enough for existing subscribers by offering them a new credit to avoid them jumping ship to the magenta upstart. The carrier will slap $100 in credit onto the monthly bill of any new or existing customer who activates a new line of service on their account, whether that be for a phone, tablet, hotspot, or wireless home line.

The move follows T-Mobile's outspoken press release yesterday, which made up fake quotes attributed to AT&T CEO Ralph de la Vega. The release also slammed AT&T for only offering incentives to new customers, not existing ones.

AT&T's response does of course come with a sting: that existing subscribers still need to increase their spend with the carrier if they want to see that credit. Those sticking with AT&T but not adding another line won't benefit.

T-Mobile's satirical – and at times bizarre – release had also highlighted AT&T's offer to pay up to $450 to cover early termination fees and other costs for former subscribers leaving rivals and returning. The offer echoed T-Mobile's own "Uncarrier 4.0" deal, in which it will pay up to $650 for up to five people in a household switching from another network and trading in their existing phones.

AT&T's $100 offer will run until March 31, 2014, the carrier says. Those who take advantage of it should see the credit applied within three bill cycles.