T-Mobile US unveiled the third leg of its “un-carrier” strategy this week, looking to relieve a pain point of frequent world travelers.
The carrier announced that beginning Oct. 31, customers signed up to its Simple Choice rate plans – unveiled earlier this year as the first leg of its makeover – would have access to unlimited data and messaging services in more than 100 countries at no extra charge. Customers looking to communicate the old-fashioned way will be charged 20 cents per minute for all voice calls in those same markets.
(For those looking to fill-in-the-blank, the second leg of T-Mobile US’ “un-carrier” strategy was the summer launch of its JUMP device upgrade program.)
No where is the term “4G” thrown around with these international data plans, and in fact T-Mobile US noted that customers will be accessing international speeds at closer to 2G and 3G levels, but enough to handle a majority of customer needs. Those looking for true 3G speeds will be able to purchase “speed packs” providing a 100 megabytes per day for $15 or 500 Mb over two weeks for $50. LTE roaming is still not in the picture. T-Mobile US is also limiting the duration of the data offer, noting data roaming sessions will be limited to six weeks and that half of a customers total data usage over a three-month period must come from the carrier’s domestic network.
The move looks to hit was many have seen as a cash cow for carriers that typically charge steep per-megabyte charges for customers looking to access data services when crossing borders. For instance, Verizon Wireless last year unveiled a plan that offers customers international data roaming at $25 per month for 100 megabytes of data transmission in 120 countries across Europe, South America, the Caribbean, Mexico and Canada.
“The cost of staying connected across borders is completely crazy,” said John Legere, president and CEO of T-Mobile US, in a statement. “Today’s phones are designed to work around the world, but we’re forced to pay insanely inflated international connectivity fees to actually use them. You can’t leave the country without coming home to bill shock. So we’re making the world your network — at no extra cost. … The truth is that the industry’s been charging huge fees for data roaming. But what’s most surprising is that no one’s called them out — until now.”
T-Mobile US, which continues to be controlled by German telecom giant Deutsche Telekom, earlier this year updated its international roaming plans with a flat-rate data roaming offer across 119 destinations beginning at $25 per month for 150 megabytes, up to $120 per month for 1 gigabyte. For those traveling to Canada and/or Mexico, T-Mobile US offered 150 Mb for $15 per month and 1 GB for $70 per month. T-Mobile US controlled overage on those plans by throttling data speeds once a customer hit their bucket limit.
On top of the roaming plans, T-Mobile US also announced a new plan that provides for discounted calling and texting from the United States to the same 100-plus countries. The rates are capped at 20 cents per minute for all voice calls to all mobile phones, with unlimited messaging and customers also having access to unlimited calls to landline phones in 70 countries at no cost. That plan runs $10 per month.
The new offers should cater to customers beyond the traditional consumer market that seems to have taken a liking to T-Mobile US’ initiatives, as enterprise customers are often also the most likely to travel overseas and continue needing access to data services. The new plans may not have the same impact on customer growth, but should attract higher-valued enterprise users.
LTE: 200M pops and counting
Beyond the rate plans, T-Mobile US also noted that its LTE network had reached the 200 million potential customers covered milestone, a figure it had originally expected to hit by year end. The carrier noted its LTE service was now available in 233 “metros” across the country, which while still trailing total coverage of its larger rivals Verizon Wireless and AT&T Mobility, puts increased pressure on Sprint, which has said it was still on track to hit the 200 million pop coverage mark by year end despite having a one-year head start on deployment.
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