AT&T resurrects unlimited mobile data as part of new TV bundle

Finally, AT&T Unlimited Plan customers can add unlimited talk and text as well as 1GB of data usage in Mexico for an additional $10 per month.

The new AT&T Unlimited Plan is the first of many integrated video and mobility offers the company plans to announce in 2016.

Of course, there’s a catch associated with this new plan, which means that some folks that’d like an unlimited data plan on AT&T won’t get this new offering.

Among the signup incentives, AT&T is offering new or existing DirecTV and U-Verse TV subscribers a $500 credit if they switch to the AT&T Unlimited Plan with an eligible trade-in and buy a smartphone.

“It’s a huge cross-sell opportunity”, he said in an interview with CNNMoney.

AT&T completed its acquisition of DirecTV, the satellite TV provider, in July.

AT&T and Verizon Communications (NYSE:VZ) had phased out unlimited data plans. The promotion targets the 15 million households that subscribe to DirecTV but not AT&T wireless, and the 21 million households that subscribe to AT&T wireless but have no TV subscription.

“The cross-selling opportunity for us is just staggering”, Lurie said.

The AT&T Unlimited Plan may be available for a limited time to consumer wireless customers. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Some analysts think the plan is likely in response to T-Mobile’s recent plan that offers free music and video streaming, titled Binge On, a plan that also runs $180 per month for four subscribers.

“Quite frankly, nobody knew each other”, he said. Both the biggest wireless carriers let their existing customers keep unlimited plans, although the price has gone up recently.

AT&T also took a not-so-subtle jab at competitor T-Mobile, which has drawn criticism from YouTube and internet advocacy group, Electronic Frontier Foundation, for slowing down videos on its network via its Binge On unlimited video streaming program, even if the service isn’t partnered with T-Mobile.

But but de la Vega said he sees progress being made. It’s unclear if any throttling will apply after a certain data threshold, as has been AT&T’s controversial policy in the past. “They’ll have a hard time responding on a nationwide basis”, Entner says, since AT&T’s deal hinges on the DirecTV customer relationship.

T-Mobile has surpassed Sprint to become the No. 3 carrier behind ATT&T and Verizon.