Beginning in mid-September, AT&T will rollout nationwide access to its new contract-free Aio Wireless service.
AT&T launched Aio (pronounced A-O) in May with a trial in a select few southern metro markets. According to the company's FAQ page, Aio targets "value-conscious" wireless customers with prepaid no-contract plans. If the company's contract-free business sounds familiar to you, you're not the only one. Last week, T-Mobile filed a law suit against AT&T over Aio's use of a similar hue of magenta in their branding.
T-Mobile's suit alleges that "AT&T Inc set up Aio to compete directly with T-Mobile," and Aio's use of the color magenta "is likely to dilute T-Mobile USA, Inc. (TMUS)'s famous magenta color trademark, and to create initial interest confusion." AT&T has denied the charges.
Aio's services are indeed similar to T-Mobile's no-contract Simple Choice plans, which have helped the upstart carrier make a mark in the mobile landscape. According to the company's last published quarterly report, T-Mobile added 678k net new customers following the rollout of its "Un-carrier" strategy. This marks the company's strongest growth in four years.
Aio's plan options are indeed competitive with those of T-Mobile. For example, Aio's $55 per month Smart Plan offers unlimited talk and text along with "unlimited data" (high speed access for the first 2GB), as compared to T-Mobile's $60 per month plan, which offers unlimited talk and text and "unlimited web" (high-speed access for the first 2.5GB).