MetroPCS Inc. (NYSE: PCS) customers who want unlimited data and video on-demand content over Long Term Evolution (LTE) will now have to pay US$10 extra.

The contract-free carrier has increased the price of its unlimited data plan from $60 to $70 a month, as well as removed access to MetroStudio videos from the $60 plan, which is now throttled after a data cap of 5GB is reached.

MetroPCS's data plans now include:

According to a MetroPCS spokesman, MetroStudio VoD is also offered as a $10 add-on feature for customers on lower-priced plans, with content counting toward their plan's respective caps. Once the cap is reach, data speeds are throttled to a speed similar to what they might experience on the carrier's 3G networks, he says.

Why this matters
Just last week, MetroPCS VP of Finance and Treasure Keith Terreri told a Barclays Capital conference audience that the carrier was considering adding another higher tier of data for its LTE service plans, so the move isn't a big surprise. (See MetroPCS Balks at Wholesale LTE.)

It is interesting, however, that video is only available on the highest-price unlimited plan or as an add-on charge. It's clearly the app that's driving the most traffic for MetroPCS, as well as one it believes will encourage customers to upgrade to unlimited. (See MetroPCS Gives Video the 4G Treatment.)

Chao told LR Mobile last month that data congestion on its LTE network is not yet a concern for the contract-free carrier, so its pricing changes are likely motivated by making money rather than alleviating congestion. MetroPCS has found that its customers will pay for video, and is banking on the unlimited data to offset the higher price. Plus, its $70 plan is still lower than larger competitor Verizon Wireless 's highest tier at 10GB for $80 per month, although its $60 tier for 5GB is $10 more expensive than both Verizon and AT&T Inc. (NYSE: T)'s offers . (See MetroPCS Continues 4G Price War.)

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— Sarah Reedy, Senior Reporter, Light Reading Mobile