Pricing move realigns prepaid service below Simple Choice postpaid
T-Mobile US is set to slash pricing on its prepaid rate plans and eliminate the unlimited data offering in a move the carrier claims will bolster its position as the domestic market’s largest prepaid wireless provider.
The company said that beginning Jan. 25, its branded prepaid offering will change names from Simple Choice to Simply Prepaid, with a corresponding $10 price cut on three rate plans. The former $50 plan, which includes unlimited voice calling, messaging and 1 gigabyte of high-speed data, will be $40; the $60 plan that has up to 3 GB of high-speed data will be $50; and the $70 plan that offers up to 5 GB of high-speed data will be re-priced to $60. The carrier’s current $80 plan that includes unlimited high-speed data access will be dropped.
The new prepaid plans also will offer T-Mobile US’ Wi-Fi calling, in-flight messaging and visual voicemail for no additional fee. Customers who surpass their data bucket will have their network speeds curtailed from an already limited 8 megabits per second to 128 kilobits per second, thus removing overage charges.
T-Mobile US last year updated its per-minute Pay as You Go prepaid plans to provide for a flat-rate, 10 cents-per-minute for calls or per text message, regardless of the amount of money a customer contributes to their prepaid account. That plan does require a $3 monthly minimum, which includes access to 30 minutes of voice calling or text messaging. Customers can also purchase LTE data passes, priced at $5 for a one day pass of up to 500 megabytes of data or $10 for a one week pass of up to 1 gigabyte of data.
The new plans will position the prepaid offerings at a $10 discount to similarly featured Simple Choice prepaid rate plans. Device availability between postpaid and prepaid accounts are a bit different, with the prepaid side having direct access to a wider range of entry-level devices. However, T-Mobile US does allow any network compatible phone to be used with its prepaid service.
In between its traditional prepaid and postpaid offerings, T-Mobile US continues to offer its Simple Starter plans, which for $40 per month offer unlimited voice calling, messaging and 500 megabytes of high-speed data, or for $45 per month offers up to 2 GB of high-speed data.
T-Mobile US, which last summer claimed the nation’s No. 1 prepaid “crown” from Sprint, said it added 1.2 million net prepaid customers in 2014. T-Mobile US’ prepaid operations also have received a jolt from its acquisition of MetroPCS, which brought nearly 10 million prepaid customers to T-Mobile US and continues to be a branded effort for the carrier.
The prepaid market is expected to see increased competition as AT&T Mobility continues to integrate its Cricket Wireless operations; Sprint continues to push its in-house Virgin Mobile USA, Boost Mobile and branded prepaid services; and Verizon Wireless slowly acknowledges the existence of prepaid services.
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