The typical mileage earning routine is to fly somewhere, open a credit card, or spend cash in a bonus category. This offer is a departure from that altogether. American Airlines and AT&T just announced a new promotion offering 20,000 AAdvantage miles when you switch to AT&T's wireless services from another company and a family of four can also accrue 80,000 miles together.

No application for a credit card. No flight required. No points portal to navigate. Simply a carrier switch and a bit of patience to wait for the miles to come.

It's a good idea or not, depending on your wireless status right now, but for the right household, it's really tantalizing.

How the Offer Works

The mechanics are simple, but there are some steps to be taken in order to earn the miles and if they are not performed, the bonus is lost.

It's pretty simple: You cancel your current contract with Sprint and add a smartphone to AT&T's postpaid voice and data plan (either by purchasing a new phone or bringing your own). You have 14 days from the time the line is activated to complete AT&T's redemption form with your AAdvantage number. You then maintain the service and do not have any issues for at least 60 days.

After you pass that 60-day cutoff, AT&T is estimating that the miles will be in your AAdvantage account in 8 to 10 weeks. This isn't a quick payoff, as it's a longer lead time than most travel promotions. There is an activation fee of $35 per line, in addition to taxes and restrictions.

This is especially appealing for families, because of its per-line structure. The 20,000 miles are awarded to each line separately, and are credited to its own separate AAdvantage account, so the total 80,000 miles for a household of four lines can be spread among four different AAdvantage accounts.

The other feature-worthy deal is the trade-in of an eligible device at $290 or higher that will get the Samsung Galaxy Z Fold8 for $0 on a 12-month installment plan, with AT&T's Premium 2.0 or above service plan ($100/month before discounts).

Running the Numbers

The value of AAdvantage miles is around 1.4 cents per mile, or about $280 for 20,000 miles. Four times that equals around 80,000 miles worth $1,120 for the redemption value, but $140 for four line activation fees.

The numbers don't look bad on paper. However the more important calculation is the monthly one. As long as AT&T's plan doesn't cost more than what you're already paying, the numbers add up rapidly. If the miles are worth more than $480 for the first two years, then all the way up until that point, a no-annual-fee rewards credit card with the same reward but no monthly payment is a bigger deal.

However, if you're already considering switching to another carrier or if AT&T's rates are comparable to those of your current carrier, the miles are just a bonus on top of the purchase.

Some very Important Vocabulary to keep in mind Before Switching

So there are a few situations, where your miles don't count and the 14 day window in particular is really easy to overlook in the hustle and bustle of a carrier switch:

• Activation requirement: Needs to activate a smartphone on an AT&T postpaid voice and data plan (from new purchase or bring your own)
• Redemption period: Must fill out an AT&T redemption form with an AAdvantage number within 14 days of the line activation in order to receive the bonus otherwise, it will be lost.
• Service requirement: Non-service member must have been on good standing for at least 60 days after activation.
• Miles posting timeline: Wait 8-10 weeks after the 60 days to see miles in your AAdvantage account.
• There is a $35 activation fee per line, plus taxes and restrictions apply.
• This is a function for the family distribution and not a consolidated household bonus per-account crediting: Each line's 20,000 miles are credited to a separate AAdvantage account.

How 20,000 Miles Per Line Compares

For comparison, 20,000 AAdvantage miles won is not enough to redeem a ticket across an ocean in business class by itself, but it is a significant step toward a larger picture that is the process of redemption. In comparison, the welcome bonuses for most airline co-branded credit cards include between 50,000 and 100,000 miles, but also involve credit card application and an annual fee, as well as a minimum spending requirement. This offer is for those who don't need them.

The total value begins to "cross into premium cabin territory" when the miles are aggregated to a common redemption and then it's a couple of domestic round-trips on the lower end of AAdvantage's award chart on the other end for the family maxing out at 80,000 miles across the four accounts.

The most critical operational fact to be memorized before a switch is the requirement to submit forms for 14 days. This bonus does not require any automatic tracking when the minimum spending requirement is met, unlike the case of welcome bonuses for credit cards, which are trackable automatically. It is very simple but important to set a calendar reminder the day the line is activated.

The People who Should Actually Consider This, will

The most natural fit for this promotion is a family in either of two states: 1) not happy with their carrier, and already considering another option; or 2) a family who don't care about the carriers and are willing to jump from one to the other if the economics are right.

When you take a carrier choice that's already being considered and add another 20,000 miles per line to the mix, it's a definite advantage for American Airlines fans on either side. If they are happy with the service they're already using and would only need to pay a little more per month for the privilege of gaining a bonus, then the numbers generally don't work out and there are simpler ways to earn an AAdvantage balance without the two-year wireless contract.

There is no term given to specify an expiration date on the offer, but offers of this nature usually have a specific time limit. If you would like to see, then visit the terms and conditions page on the American Airlines AAdvantage promotion page and see if the promotion is still running.

The Bottom Line

American Airlines and AT&T are providing 20,000 AAdvantage miles per wireless line switched to AT&T (up to 80,000 miles per household). A standard valuation of 20,000 miles per line is valued at about $280 in travel value per $35 activation fee. The trick is the redemption process: The redemption form needs to be received within 14 days of activation, service must remain active for 60 days, and miles must be posted an additional 8 to 10 weeks post-activation. 

The offer does make a lot of sense if they're thinking about switching from their current carrier to AT&T or are weighing more carriers, but not if you're thinking of making the switch and would spend a lot more than you currently do with your carrier on your monthly bill. If your family is a good match for the program, 80,000 miles spread out over four accounts is a truly valuable bonus that piggybacks on a sound family decision.