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Wal-Mart expands prepaid phone service to AT&T

Customers looking for lower monthly rates from a prepaid cell phone will soon be able to find some on the AT&T network in Wal-Mart stores.

Jessica Dolcourt Senior Director, Commerce & Content Operations
Jessica Dolcourt is a passionate content strategist and veteran leader of CNET coverage. As Senior Director of Commerce & Content Operations, she leads a number of teams, including Commerce, How-To and Performance Optimization. Her CNET career began in 2006, testing desktop and mobile software for Download.com and CNET, including the first iPhone and Android apps and operating systems. She continued to review, report on and write a wide range of commentary and analysis on all things phones, with an emphasis on iPhone and Samsung. Jessica was one of the first people in the world to test, review and report on foldable phones and 5G wireless speeds. Jessica began leading CNET's How-To section for tips and FAQs in 2019, guiding coverage of topics ranging from personal finance to phones and home. She holds an MA with Distinction from the University of Warwick (UK).
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Shoppers perusing Wal-Mart for a cell phone will soon have double the options--that is, a choice of purchasing a prepaid phone on two carriers instead of just one.

Wal-Mart's Straight Talk wireless service, which has previously run only on Verizon's networks, is expanding to AT&T. StraightTalk is a brand made by TracFone, and is sold exclusively in Wal-Mart stores.

AT&T confirmed to The Wall Street Journal on Monday that StraightTalk phones will work on the network. Wal-Mart would not comment on the impetus behind building out the service to include AT&T.

The expansion to AT&T is interesting for two reasons. First, it gives Wal-Mart a foothold in the GSM prepaid market, in addition to its presence on CDMA channels through Verizon's network. This will allow Wal-Mart to sell its prepaid phones to customers who may live in a coverage area better served by AT&T than by Verizon.

Second, the agreement lets AT&T gain new customers through Wal-Mart's prepaid channels. The Journal notes that "Verizon Wireless added 896,000 customers through its wholesale partners--with Straight Talk believed to be the largest contributor." That's nothing to sneeze at were AT&T able to similarly acquire new customers.

Article updated at 1:18PM PT with Wal-Mart's response.

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