T-Mobile USA to launch HSPA+ modem, data now contract optional

T-Mobile USA Inc. continued its 3G push today unveiling the first HSPA+ device to be offered by a nationwide U.S. carrier that it plans to offer to consumers beginning March 14. The USB modem device, dubbed the WebConnect Rocket USB Laptop Stick, will initially be available in the Philadelphia market where the carrier has recently upgraded its HSPA network to HSPA+ capabilities. That upgrade increases theoretical download speeds from 7.2 megabits per second to 21 Mbps.
T-Mobile USA said its HSPA 7.2 network currently is available n 273 cities covering more than 206 million potential customers, with plans to upgrade the backhaul capabilities and network equipment across its network in support of HSPA+ by the end of the year. The carrier added that it expects to turn on HSPA+ capabilities in major markets along both the east and west coast in the coming months.
The WebConnect Rocket device is backward compatible with the carriers HSPA 7.2 network as well as combining Wi-Fi connectivity. The device is set to retail for $100 after rebates and a 2-year contract on one of its Even More WebConnect data plans.
With the launch of the new device, T-Mobile USA will also expand its data plans to now include a no-contract option similar to what it launched late last year for its voice plans. The Even More Plus plans allow customers to pay less per month for their rate plans at the expense of the initial handset subsidy, which typically runs between $100 and $200. Customers can choose to fold the price of their device into their monthly rate plan charges spread out over a span of between four and 20 months.
For customers interested in forgoing the contract as well as a larger handset subsidy, T-Mobile USA offers a capped plan that includes five gigabytes of data transmission per month for $50, which is a $10 per month discount on the 2-year, full subsidy contract offering. The same $10 per month discount also applies to its capped 200 megabyte per month offering that is available for $20 per month without a contract. All of its data plans continue to offer unlimited access to the carrier’s HotSpot Wi-Fi service.
The no-contract plans also undercut the contract data plans from its larger nationwide rivals that run $60 per month for 5 GB of access to their respective 3G networks. Sprint Nextel Corp. recently began offering unlimited access to its Clearwire Corp.-sourced WiMAX network as part of its $60 per month package. Verizon Wireless launched a no-contract data plan last year that provides for up to 500 Mb of data transmission for $50 per month, a move that was echoed by AT&T Mobility shortly after. Both carriers require customers to pay full price for the data modem on their prepaid offerings.
Leap Wireless International Inc. offers a no-contract wireless data card solution through its Cricket subsidiary at $40 per month for 5 GB of data throughput or a grab and go package that provides 10 GB for $50 per month. Virgin Mobile USA Inc., which is now a subsidiary of Sprint Nextel, earlier this month increased the cap on its prepaid mobile data plan from 1 GB per month to 5 GB per month for the same $60, while dropping the price of the 1 GB plan to $40 per month.