T-Mobile US plans keeping pressure on rivals Verizon Wireless, AT&T Mobility and Sprint
Update: T-Mobile US have announced their new promotional plans. Click here for details.
T-Mobile US is not letting another robust quarter of customer growth keep it from continuing to pressure its rivals.
The carrier, which last week announced it added a strong 2.1 million net connections to its network during the recently completed second quarter, is set to roll out a new promotion this week. The move is expected to target customers on current promotional plans and would be the third new offering from the carrier since late last month.
Last week, T-Mobile US announced that beginning July 15, customers will have access to unlimited voice calling to and from Canada and Mexico as well as higher-speed LTE services when traveling in Canada and Mexico for no additional fee. The plan also includes the already available unlimited text messaging services.
However, it was reported by CNet that only customers on nonpromotional plans can add the new free access to their rate plans, with those on plans like the four lines for $100 needing to pay an additional $10 per month per line for the new offer. To counter this, T-Mobile US is said to be readying a transitional plan targeting customers on past promotional offers, but compatible with the new changes.
T-Mobile US COO Mike Sievert told CNet that the “big, bold” plan would likely be announced before midweek. The timing could be important as analysts expect T-Mobile US to again be the market’s leader in signing up new smartphone connections, which are seen as more lucrative financially than nontraditional device connections.
However, there remains concern that T-Mobile US’ rampant growth has so far not resulted in a significant financial return as the carrier continues to post net financial losses. Those results have seen falling average revenue per user and increased customer acquisition costs tied to its promotional efforts continuing to offset its robust growth.
T-Mobile US last month updated its JUMP on Demand offer and a lower monthly price point on the Apple iPhone 6 16 GB. The carrier said its new JUMP program allows customers to upgrade their device up to three times per year on “select” new devices at no additional charge, and is an update to its initial JUMP program announced in 2013.
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