AT&T Inc.(NYSE: T) has lost 61,000 postpaid customers in North America in the first quarter of FY 17 , while analysts were expecting 95,000 additions. T-Mobile US Inc and Sprint Corp have engaged in aggressive price wars, and it appears that’s catching up to AT&T. T has posted 2.7 million wireless net adds in the latest period, with 2.1 million of those coming from the U.S., and 633,000 in Mexico. AT&T has lost more of its most lucrative wireless customers during the first quarter as the company lured customers from each other with offers of unlimited data plans. Most people already have a cellphone, and the four major wireless carriers have launched the unlimited plans and other features in a bid to poach customers from their rivals.

Moreover, AT&T has shed 348,000 cellphone customers who get a bill each month in the first quarter, Verizon has last week reported that it lost 289,000. Verizon introduced unlimited plans during the quarter because it was alarmed at how many customers it was losing. T-Mobile, which has been cleaning up in the past couple years, has added 798,000. Further, AT&T has reported that the average amount it gets from such customers’ service plans has also ticked lower, to $58.09 a month from $59.53 a year earlier. The company also said that customers are holding on to their phones longer, pressuring the equipment sales.

Additionally, AT&T has acquired DirecTV in 2015 and is in the process of buying Time Warner, home to the CNN, TBS and HBO networks and a movie studio, to help it expand beyond its traditional business lines. More mergers are expected in the wireless industry, with the Trump administration.

Meanwhile, AT&T has in the first quarter of FY 17, reported the adjusted earnings per share of $0.74, which is line with the analysts’ estimates for the adjusted earnings per share of $0.74. The company had reported the adjusted revenue fall of 2.8 percent to $39.4 billion in the first quarter of FY 17, missing the analysts’ estimates for revenue of $40.5 billion.

T in 2017 expects the adjusted earnings per share growth in the mid-single digit range, the capital expenditures in the $22 billion range and the free cash flow in the $18 billion range. T stock has risen 4.91% in the last year (source: Google Finance). The stock has a consensus recommendation of a “Moderate Buy” with an average price target of $44.63, which is a further upside of 11.74%.