.

As we reported last week, AT&T today launched its new pre-paid wireless MVNO called Aio Wireless with the iPhone 5 on offer, front and center. Currently, the service is only available in Houston, Orlando and Tampa but it is expected to roll out nationally over the coming months.

The company will offer 4 plans: Aio Basic, Smart and Pro phone plans at $35-40 for 250MB, $55 for 2GB and $70/month for 7GB data respectively. Each plan will shift to lower speed data after data is used up and also offers unlimited calls and text on AT&T’s network. They will also offer a tablet plan that starts at $15/month for 250MB.

The MVNO will carry Android, Windows and Apple smartphones including iPhone 4S for $499 and iPhone 5 for $649 without subsidy. They also cap 4G data at 4Mb/s so LTE speeds shouldn’t be expected.

Clearly this, as well as Verizon’s upcoming MVNO-like service, will address the competition from T-Mobile and other pre-paid carriers.

Press release and rate plans follow:

Aio Wireless(TM) Announces New Nationwide Voice and Data Service Copyright 2013 PR Newswire. All Rights Reserved 2013-05-09 ALPHARETTA, Ga., May 9, 2013 /PRNewswire/ — Today Aio Wireless announced the launch of a new nationwide wireless service for consumers interested in a first-class wireless experience at a value price, without an annual contract. Aio provides new choices, seamless customer experience, and simplified service and offerings to value-conscious customers interested in an unlimited talk/text/data plan with no annual contract. Aio expects the service to roll out in multiple markets across the U.S. over the next year, with an initial launch today in select stores in Houston, Orlando and Tampa, and with additional stores in these three markets opening in the coming weeks. Store locations and Aio information will be available at www.aiowireless.com. Aio (pronounced “A-O”) is a brand name that encapsulates Aio’s brand promise: simply, delightfully, more.

“We talked with no-annual-contract customers and created our service around what they want. They want simple, easy plan choices with unlimited offers; first-class service at affordable prices; great devices; nationwide voice and data coverage; and no annual contracts. Today’s wireless customers don’t want to compromise,” said Jennifer Van Buskirk, president of Aio Wireless. “We are set up to win over value-conscious customers who are increasingly moving towards smartphones and mobile broadband.”

Aio makes prepaid wireless easy for customers with a friendly in-store and on-line experience, three simple rate plans to choose from, and an attractive portfolio of devices that include smartphones, tablets, and feature phones from a variety of manufacturers, including Samsung, Nokia, ZTE and others. Aio’s unlimited talk, text, and data rate plans range from $35 to $70 per month, with pricing varying by market, and will offer 4G download speeds of up to 4Mbs per second. Customers will also have the opportunity to bring a compatible, unlocked device for activation on the Aio network. Aio will delight customers with an attitude of gratitude, easy pre-payment options, and an involvement in the local communities in which we serve.

Aio Wireless is a subsidiary of AT&T Inc. AT&T does not expect this announcement to change AT&T’s January 2013 financial guidance.

Aio’s plan pricing includes applicable state and local taxes, and fees. Each unlimited plan includes a pre-established amount of high speed data access, and service is subject to Aio’s Terms and Conditions of Service and Unreasonable Use Policy. Coverage and services are not available everywhere. Restrictions apply. © 2013 Aio Wireless LLC. All rights reserved. Aio, Aio Wireless and the Aio logo are trademarks of Aio Wireless LLC.

About Aio Wireless

Aio Wireless (pronounced A-O) was created for today’s value-conscious connected consumers who want it all. We created a new class of service for individuals who expect a first class wireless service at a value price – one with no-annual contract, friendly service, uncomplicated plans and the mobile phones and tablets you love. All of Aio’s phone plans include unlimited talk, text and data, with taxes and fees included – the price you see is the price you pay. Aio Wireless is a subsidiary of AT&T Inc. Visit www.aiowireless.com to find out more.

Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.

For media inquiries: Kathy Van Buskirk Aio Wireless Kathy.vanbuskirk@aiowireless.com 720.432.7651

SOURCE Aio Wireless