T-Mobile US added a second phase to the third phase of its “un-carrier” marketing initiative, announcing the addition of tablet devices to its previously announced device payment model. Along with the ability to pay for a device over a 24-month period, T-Mobile US also said that customers that purchase a tablet or bring a tablet to the carrier will receive 200 megabytes of data over the carrier’s LTE network for free each month.
Citing a report that claims 90% of tablet data usage is over a Wi-Fi connection, T-Mobile US claims its “Un-carrier 3.0 Pt. II” move will encourage more customers to tap into the cellular capabilities of those devices once the offer starts on Nov. 1. For what is supposed to be a “simple” plan, there are quite a few details.
First, customers signing up for only a tablet plan and select the 200 free megabytes will have their usage end at that limit each month. They will then be offered a prompt to purchase more data through a higher monthly allotment, or through a limited-use pass. Daily passes include unlimited data with 500 MBs of LTE data for $5, while a weekly pass will include unlimited data with one gigabyte of LTE access for $10.
For customers that add a tablet to a current Simple Choice voice plan – the “Un-carrier 1.0” initiative launched earlier this year – they will see the free 200 MBs of data added to their data bucket of choice, meaning customers that select the standard 500 MB data plan for $10 per month will have an additional 200 MBs of LTE service before having speeds throttled. Customers can select up to 2 GB data buckets for $10 per increment per month, which is different from its smartphone plans that allow for unlimited LTE data for $20 per month. Simple Choice customers will be able to tap into T-Mobile US’ recently announced unlimited international data plans – the “Un-carrier 3.0” initiative launched earlier this month – that offer coverage across more than 100 countries, something that customers remaining with the free 200 MBs or limited-uses passes will not have access to.
Device offering
While customers can bring any tablet compatible with T-Mobile US’ network to the offer, the carrier unveiled the new plans alongside the launch of new tablets. Those tablets will include the recently launched Apple iPad Air and iPad Mini with retina display, as well as the previous generation iPad Mini. The iPad Air and iPad Mini will be available from the carrier beginning Nov. 1, while the iPad Mini with retina display is set to launch by the end of November.
Other devices in the mix include the Google Nexus 7 – no money down and $16 per month – and Samsung Galaxy Tab 2 10.1 – no money down and $19 per month – both of which are compatible with T-Mobile US’ LTE and legacy networks. T-Mobile US currently offers the Galaxy Tab 2 10.1 for $100 upfront and monthly payments of $15 for 24 months. T-Mobile US announced last month that it would offer 2 GBs of free LTE data for one month when a customer purchases the device through Google’s Play Story for $349.
T-Mobile US noted that some of the tablet devices will be available through a limited-time promotion for no money down beginning Nov. 1. The offer will result in the iPad Air requiring a monthly payment of $26.25 for the 16 GB model, with the 32 GB and 64 GB models seeing a similar monthly payment after a $100 and $200 down payment respectively; iPad Mini with retina display priced at $22.08 per month for the 16 GB model, with the 32 GB and 64 GB models seeing a similar monthly payment after a $100 and $200 down payment respectively; and iPad Mini priced at $17.91 per month for the 16 GB model.
Tablet customers will not have access to T-Mobile US’ JUMP program – the “Un-carrier 2.0” initiative unveiled in July – that allows smartphone users to trade in their device for a new model without having to pay any upfront charges. Instead, tablet customers will be able to trade in any tablet device for a credit towards a tablet offered by T-Mobile US.
T-Mobile US’ rivals have for the most part kept tablet devices at arm’s-length, not offering much if any subsidy on those devices and preventing tablet customers from accessing “unlimited” data. This despite the fact that an increasing number of customer additions are coming from the device segment.
AT&T Mobility and Verizon Wireless have attempted to tap into the surge by allowing customers to add a tablet to a postpaid shared data bucket for $10 per month. Sprint offers separate no-contract data buckets for tablet devices beginning at $5 per month for 25 MBs, up to $80 per month for 12 GBs.
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