AT&T Scraps 3G-Only Strategy for New Prepaid Brand

AT&T has upped the ante for its new prepaid division, Aio Wireless.

Initially, Aio was only going to run on 3G speeds. Now comes word that AT&T is adding LTE to the mix, complete with the 4G-capable ZTE Overture.

"We’re delighted to share the news of our 4G LTE service and our new LTE-capable device…bringing even faster data speeds and more choices to our growing family of Aio customers," Jennifer  Van Buskirk, president of Aio Wireless, said in a press release.

AT&T announced Aio in May. The brand features plans ranging from $35 to $70 per month without a contract. Aio even will have its own retail outlets, with services kicking off in Houston, Orlando and Tampa, Fla. Ft. Myers and Naples, Fla., joined that list earlier this week. AT&T already offers the GoPhone prepaid brand, but Aio targets data users.

AT&T has said its Aio strategy is not a direct response to T-Mobile’s new "uncarrier" strategy, but the operator clearly wants to cash in on the increasingly popular and lucrative prepaid strategy that T-Mo and many smaller carriers have adopted.

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