The domestic prepaid market continues to remain a battleground for mobile operators, with T-Mobile US this week announcing a new “unlimited” offer through its MetroPCS operations.
The promotional plan is priced at $30 per month, and includes unlimited domestic voice calling, text messaging and data services, with the first 1 gigabyte offering HSPA-based speeds before being throttled down to GPRS/EDGE speeds. LTE-enabled devices are not eligible for the plan. The promotion also allows customers to cut $5 per line on multiple-line accounts up to five lines, thus a 2-line plan would run $50 per month.
The offer includes all taxes and fees is available beginning March 24 to all customers with a GSM-based device.
T-Mobile US noted the deal undercut offerings from Sprint’s Boost Mobile division and AT&T Mobility’s Cricket service, calling out its nearest rivals. Cricket and Boost Mobile currently offer plans beginning at $35 per month for unlimited domestic calling, text messaging and 2.5 GB of LTE-based data services.
Though not named by T-Mobile US, TracFone Wireless last week expanded its prepaid business with the launch of Total Wireless exclusively through Wal-Mart locations. The service offers single lines beginning at $25 for 30 days of unlimited domestic calling and text messaging, with the option to add 2.5 gigabytes of data for $10. The service runs across Verizon Wireless’ 3G network.
AT&T recently reported that continued integration challenges connected with its relaunched Cricket service are set to impact first-quarter financial margins, though decrease through the year.
T-Mobile US has already cut pricing on its branded prepaid service this year as part of a rebranding to Simply Prepaid, which for $40 per month includes unlimited voice calling, messaging and 1 gigabyte of LTE data at speeds up to 8 gigabits per second before being throttled down to 2G speeds. Those plans also include T-Mobile US’ Wi-Fi calling, in-flight messaging and visual voicemail.
In addition to trying to lure customers from rivals, the plan appears to be a new attempt by T-Mobile US to migrate legacy MetroPCS customers with CDMA-based devices over to the T-Mobile US network.
Following its 2013 acquisition of MetroPCS, T-Mobile US has aggressively moved to migrate legacy customers in order to refarm the MetroPCS spectrum assets to support T-Mobile US’ GSM and LTE network. MetroPCS continues to support CDMA-based services using its 1.9 GHz and 1.7/2.1 GHz spectrum holdings, as well as LTE services using 1.7/2.1 GHz spectrum. T-Mobile US is looking to tap MetroPCS’ 1.7/2.1 GHz spectrum to bolster its LTE network, with the 1.9 GHz spectrum expected to also be refarmed in support of LTE services. T-Mobile US’ GSM-based operations currently rely on its 1.9 GHz spectrum, although the carrier has said it plans to refarm some of that spectrum to support its growing LTE business.
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