Carrier rolls out unlimited data-focused multi-line plans, brings back hit
Looking to keep pressure on its larger rivals, T-Mobile US rolled out new family plans offering up unlimited data options and brought back what it termed its most popular promotion over the last decade.
T-Mobile US said that starting Dec. 10, multi-line customers can sign up for new family plans that include unlimited LTE data access beginning at $100 per month for two lines. Each additional line, up to a total of 10, can be added for $40 more per month. Those lines include all the features of the carrier’s Simple Choice rate plans, including unlimited domestic calling and text messaging, the carrier’s streaming music service, its international roaming feature, free access to Wi-Fi calling and in-flight services.
The offering’s biggest change is that T-Mobile US is charging $40 less per month for the first two lines of service, which on its old plans ran $140 per month. The $40 per-month, per-line addition with unlimited data remains the same. The plans also continue to only offer unlimited data on T-Mobile US’ LTE network, with roaming still capped and access to LTE limited.
T-Mobile US notes that the new offering undercuts Verizon Wireless and AT&T Mobility across the board, as well as matches the least expensive offering from Sprint for two lines, before becoming cheaper as more lines of service are added. Of course, all three of the larger rivals offer greater LTE reach, though T-Mobile US can at least stake a claim to offering network speeds at least matching the fastest offers on the market.
The carrier is also relaunching its four-line focused plan that, for $100 per month, provides each line of service with 2.5 gigabytes of data on top of the Simple Choice standard features. The 2.5 GB data bucket is good through the end of 2015, at which point it will revert to the 1 GB of data currently offered at that price point.
T-Mobile US initially launched that offering in late July, with the same end date for the 2.5 GB data promotion, so you could say the relaunch does not have the same fiscal savings. The carrier claims the initial launch resulted in the offer being its most successful promotion over the past decade.
Both promotions are also available to T-Mobile US’ business customers and are said to be available for a limited time.
The offers come on the heels of larger rivals Verizon Wireless and AT&T Mobility both hinting that competitive pressures during the fourth quarter have been higher than expected, resulting in their scaling back some operational forecasts. Verizon Wireless parent company Verizon Communications said that Q4 customer churn was trending higher than expected, and that recent promotions and discounts will impact earnings. AT&T management made similar claims at an investor conference this week, noting that the competitive environment is impacting churn and forcing the carrier to put more money on the table in order to lure new customers.
Sprint has also been busy throwing fuel on the competitive fire, most recently with its “Cut Your Bill in Half” offer, which specifically targets Verizon Wireless and AT&T Mobility customers.
The T-Mobile US news also comes on the heels of the carrier announcing a $1 billion convertible stock offering, which sent its stock price tumbling. T-Mobile US had previously shown its own financial strain during the third quarter.
Analysts also recently noted that Sprint could be looking for a cash infusion to fund its own operational struggles, though the carrier did manage to show some improvements in financial metrics for Q3.
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