Goldman sees AT&T OneConnect as negative for Apple, Neutral for Verizon/T-Mobile

Goldman Sachs analyst Michael Ng notes that AT&T (T) has announced OneConnect, a simplified wireless and 1 gig residential fiber service, that will be made available to new customers and puts service back into the center of AT&T’s offerings. The simple, digital only product should solve pain points in customer acquisition, customer service inquiries related to bill complexity/changes, and help AT&T increase its penetration in the value segment, particularly 1-2-line households, the firm argues. Goldman views this as positive for AT&T and negative for Apple (AAPL). Moreover, the firm views this as neutral to Verizon (VZ) and T-Mobile (TMUS) as potential AT&T share gains could be offset by reduced industry-wide device subsidies.