Aio Wireless Explained

Aio Wireless LLC
Type:Subsidiary
Fate:Merged with Cricket Communications
Successor:Cricket Wireless
Key People:Jennifer Van Buskirk (President)
Cheryl Choy (Head of Network)
Parent:AT&T Inc.

Aio Wireless (pronounced "A-O" Wireless) was a prepaid wireless service provider in the United States, wholly owned by AT&T Inc., launched in May 2013.[1]

Identity

The name Aio was as an abbreviation of the term "All in One", referring to the provider's fixed price inclusion of unlimited calling, unlimited texting, and specific tiers of data of speeds of up to 4 Mbps with unlimited throttled slow data afterward.[2] [3]

Aio was nominally run in the model of a "small startup business" but with the expectation to become a nationwide player in the sub-sector, as large as MetroPCS.[4] It was designed to staunch the reduction in number of AT&T prepaid customers, as the AT&T GoPhone division lost customers to T-Mobile and Sprint,[5] [6] in part because of AT&T's failure to promote the brand.

Aio initially launched in the southern US cities of Houston, Orlando, and Tampa, and with small variance in the data tiers offered in each city. It eventually grew to 27 markets,[7] with plans to expand its physical presence into areas with a population totaling 220 million Americans by the summer of 2016.[8]

Aio developed a fully separate brand identity, with its "own processes, retail environments, culture and brand" upon launch, "operating at arm’s length from the rest of" AT&T.<ref name="FriedAug2013">Web site: Fried. Ina. August 30, 2013. AT&T Takes Its Aio Wireless Prepaid Service Nationwide. AllThingsD. [9]

Market placement

The brand was designed to compete with the other brands and providers, likewise sold through independent dealer stores in major urban areas, that offered "value-conscious consumers" unlimited calling, texting, and throttled data, such as Sprint's Boost Mobile and Virgin Mobile, T-Mobile's newly-acquired MetroPCS and its newly-developed secondary prepaid brand GoSmart Mobile, and America Movil's Tracfone Wireless lineup of brands.[10]

AT&T decided to create Aio as a separate brand for those different, "value-conscious" customers targeted by Aio's offerings.[11] [12] [13] Aio, and its successor Cricket, allowed AT&T to make use of the AT&T cellular network to aim for price-conscious consumers and experiment with offerings that might be later made available to AT&T postpaid customers, by competing through lower priced plans against other large providers, while still offering the comfort, desired by some consumers, of backing by AT&T, and while keeping the main AT&T brand separate and positioned as a premium service with premium prices.[14] [15] [16] [17] [18]

Aio was perceived by some commentators as actually designed to respond directly to T-Mobile and its new policy of no longer requiring, or offering, service contracts on its postpaid plans,[19]

Notes and References

  1. Web site: September 13, 2013. AT&T Aio Wireless no-contract cell service: What you need to know. Consumer Reports.
  2. Web site: Goldstein. Phil. May 9, 2013. AT&T launches new prepaid service under 'Aio Wireless' brand. Fierce Wireless.
  3. Web site: AT&T planning June launch of 'All In One' prepaid brand . Dano . Mike . . May 2, 2013.
  4. News: AT&T's new Aio unit aims to be major no-contract wireless provider . . September 19, 2013.
  5. Web site: DeGrasse. Martha. August 30, 2013. AT&T to launch Aio nationwide. RCRWireless.
  6. News: May 9, 2013. AT&T launches new brand Aio for prepaid phone service. Reuters.
  7. Web site: Marek. Sue. May 18, 2014. AT&T's revamped Cricket will take on T-Mobile's MetroPCS with Aio-like look, rate plans. Fierce Wireless.
  8. Web site: Saabedra. Humberto. October 18, 2013. AT&T to Fold Aio Into Cricket Pending Successful Purchase And Regulatory Approval. PhoneNews.com.
  9. Web site: Dawson. Jan. May 18, 2014. Media comment on AT&T/Cricket re-launch. Jackdaw Research.
  10. Web site: Goldstein. Phil. November 4, 2013. AT&T's Aio reassures customers as Leap acquisition approaches. Fierce Wireless.
  11. Web site: Albanesius. Chloe. May 9, 2013. AT&T Launches No-Contract Service, Aio Wireless. PCMag.
  12. Web site: Fried. Ina. August 30, 2013. AT&T Takes Its Aio Wireless Prepaid Service Nationwide. AllThingsD.
  13. Web site: Fried. Ina. May 9, 2013. AT&T's New Aio Prepaid Brand Takes a Page From T-Mobile's Playbook. AllThingsD.
  14. Web site: Broida. Rick. June 7, 2017. How to save on mobile plans: Look beyond the Big Four mobile carriers. Computerworld.
  15. Web site: Hamblen. Matt. May 10, 2013. AT&T offers iPhone 5 through pre-paid Aio Wireless. November 14, 2020. Computerworld. en.
  16. Web site: Tofel. Kevin C.. May 9, 2013. AT&T-owned AIO Wireless launches pre-paid and BYOD service, but no LTE. Gigaom.
  17. Web site: Fried. Ina. August 30, 2013. AT&T Takes Its Aio Wireless Prepaid Service Nationwide. AllThingsD.
  18. Web site: Fried. Ina. May 9, 2013. AT&T's New Aio Prepaid Brand Takes a Page From T-Mobile's Playbook. AllThingsD.
  19. Web site: Dolcourt. Jessica. May 9, 2013. AT&T's Aio Wireless rounds on T-Mobile's no-contract plans. Cnet]]}.