T-Mobile is replacing its unlimited data promotion with a capped data package, while rivals AT&T and Sprint continue to offer cheaper unlimited data plans
T-Mobile US ditched its unlimited data promotion in favor of a capped data package priced at a premium compared with previous offerings.
Beginning today, T-Mobile US is now promoting a four-line plan providing unlimited voice calling, text messaging and 10 gigabytes of unthrottled data per line for $140, which is an $80 per month discount compared with “regular” pricing, though $20 more than what the plan was priced at starting in February.
The offer is said to be available for a limited time and currently only through T-Mobile US stores, authorized dealers, through T-Mobile Care on via phone sales. The carrier plans to expand the offer to its online channel later this month.
The promotion replaces the carrier’s previous four-line, unlimited data plan, which was also launched in February and provided the potential for unthrottled data up to 25 gigabytes of usage per month, per line, with the carrier reserving the right to curtail speeds at that usage point. Customers can still select unlimited data, though pricing now for four lines of service is at $220 per month.
AT&T Mobility continues to offer an unlimited cellular data option for customers also selecting the company’s DirecTV package, which AT&T management said had attracted around 2 million customers during the first quarter. The plan offers unlimited services across four lines for $180 per month.
Sprint also maintains an unlimited data plan promotion, which it launched in February and includes unlimited services across four lines for $150 per month.
Verizon Wireless continues to eschew the unlimited cellular data path, with Verizon Communications CFO Fran Shammo recently stating the unlimited data model “does not work in an LTE environment.” Shammo downplayed the recent boost by competitors in highlighting unlimited data options, noting such moves are likely temporary and only being used to gain ground in the market.
“Look, this industry has always been competition comes in and out with promos,” Shammo explained. “That is just the nature of what we deal with on a quarterly-to-quarterly basis. A lot of the things that are out in the marketplace today are promos. These are not permanent pricing type things so you have to be careful how much you react to different competitor promotions and of course we run our own promotions. So the promotional activity will always be there and I don’t think it is more intense than it was, it is not like we are seeing what happened a couple of years ago where the entire industry was reset in pricing. I don’t see that. I just see this as business promotional activity to try to gain ground to get some maybe incremental net adds here and there.”
Instead, Shammo said Verizon Wireless will remain stable in terms of pricing moves as it looks to stabilize revenues.
“But I think for Verizon what we have done is we will do our promos, but we are steady as she goes and we are not going to respond to everything in the marketplace if we don’t think that we need to respond to,” Shammo said. “It is going to be a very logical approach because look, at the end of the day I need to grow top line and I need to grow profitability and I need to generate cash. And some of these promos you see out there they may generate growth, but they are certainly not generating cash. So they are short term and so we will ride that out.”
T-Mobile US could also be looking at its bottom line in moving away from an aggressive unlimited data promotion. Analysts have noted AT&T has insulated a financial impact from its unlimited cellular data offer by tying it to a DirecTV package.
T-Mobile device discount
T-Mobile US also rolled out a new device promotion offering a 50% discount on any tablet when purchased alongside a “flagship” smartphone by the same manufacturer on the carrier’s equipment installment plan. The discount maxes out at $200 and is in the form of a prepaid card.
Eligible smartphones and tablets include the Apple iPhone and iPad models; Samsung’s Galaxy S6, S6 Edge, S6 Edge+, S7, S7 Edge, Note 4, Note5, Tab A 8.0 and Galaxy Tab S2; and LG’s V10 and G Pad F 8.0.
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