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Home - No-contract space remains hot; MetroPCS latest to adjust plans
Carriers

No-contract space remains hot; MetroPCS latest to adjust plans

by Dan Meyer January 10, 2013
written by Dan Meyer January 10, 2013 Share
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Wireless operators continue to fine tune their no-contract service offerings in an attempt to capture a market segment that continues to be up for grabs, with MetroPCS the latest to alter its rate plans in an attempt to lure those looking for mobile without a contract.

MetroPCS noted that all of its new rate plans will include unlimited voice and messaging services, with the pricing differences connected to the amount of access to LTE data services. The entry-level plan runs $40 per month and includes 500 megabytes of LTE data; the $50 per month plan includes 2.5 gigabytes of LTE data; while the $60 plan includes unlimited access to the carrier’s LTE network. MetroPCS also touts nationwide coverage for its new plans, though LTE-based access is limited to the carrier’s native network that is limited to six regions.

The new plan structure replaces the carrier’s previous “promotional” offering that provided unlimited voice, messaging and LTE data access for $55 per month. That plan was intended to drive customers to the carrier’s LTE-based service offering as it continues to look at freeing up spectrum assets currently dedicated to its legacy CDMA-based service to bolster its LTE network.

MetroPCS’ move follows that of T-Mobile USA earlier this week, which announced it would start providing unlimited voice, messaging and “4G” data services without a contract for $70 per month. Those services at that price point were initially only available to customers signing a two-year contract.

T-Mobile USA is in the process of acquiring MetroPCS, which is expected to close later this year. Once done, speculation is that T-Mobile USA could keep the MetroPCS branding to continue offering a lower-priced wireless service offering, with the T-Mobile USA-branded service offered at a slight premium.

One sticking point for both operators continues to be the lack of Apple products in their lineup. While both operators have a number of popular Android-powered devices, the lack of an iPhone remains a glaring omission. That lack of Apple cache is even more pronounced with the announcement this week that Tracfone Wireless’ Straight Talk service, which is available exclusively through Walmart retail locations, plans to begin offering the iPhone 4 and iPhone 5 models for its no-contract, unlimited service offering. The Straight Talk offering provides for unlimited voice, messaging and data services for $45 per month.

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